Road Tax

Transferring vehicles from one state to another could become hassle-free soon if a recommendation by a group of state transport ministers is accepted by the government.

The group of ministers (GoM) constituted by the Union road transport and highways ministry, which met on Friday in Guwahati, has recommended a uniform structure of road tax for vehicles across states, a senior government official said. The GoM is headed by Rajasthan transport minister  Yunus Khan.

The recommendation, if accepted will allow the transfer of vehicles from one state to another without levying road tax. The GoM has also recommended national passenger vehicles permit for passenger cars.

Noting that the Centre has the powers to decide the principles on which the motor vehicles tax can be levied, the GoM recommended that the tax is based on invoice price of the vehicles. It has recommended three slabs, 8 percent tax on vehicles below 10 lakhs, 10 percent for vehicles costing between 10 -20 lakhs, and 12 percent for vehicles above 20 lakhs. Diesel vehicles may have to pay 2 percent extra taxes, while electric vehicles will be given a two percent discount.

However, implementing the uniform road tax structure won’t be easy as all states will have to come on board.

The GoM has also recommended a national bus and taxi permit on lines of such permit for goods transport.

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