Govt. proposes nationwide uniform road tax

The Group of Transport Ministers have proposed a country-wide uniform road tax. At the end of a 2-day meeting, ministers from all the states unanimously voted in favour of this proposal. 

It has been recommended that motor vehicle tax should be charged on the basis of the invoice price of the vehicle. Also, the rate of road tax be regularized, which is expected to make the process of transferring vehicles from one state to another smoother.

It was observed that each state has its own principles of taxation, which is why taxes vary from state to state. In this case, the central government has the power to intervene and set principles for all states to follow. A committee has been appointed to look into the matter and is likely to submit its report within the next 15 days.

The group has also recommended that national permits for passenger vehicles may be issued by the states. The cost of a permit for luxury buses and deluxe buses may be set at Rs. 3 lakh and Rs. 2 lakh per year respectively, while taxis may be charged Rs. 25,000 per year. Additionally, the ministers have proposed to increase the axle load for goods vehicles by 20%.

Source: ET Auto