Same Road Tax In All States Proposed– No More Dissimilar Taxes In Different States


If you are in Delhi you must have noticed a majority of luxury cars like Mercedes-Benz, BMW, Audi bearing HR (Haryana) license plates. Well the reason is low road tax that one has to pay when he or she buys a car from Haryana. Unlike the situation in Haryana, the state government has imposes higher road tax in Delhi which means that for cheap small cars one has to pay a smaller amount as road tax but as the cost of the increases, the tax becomes much higher.

The union government, in a recent meeting, has proposed a uniform tax rate of 6 percent for two wheelers and four wheelers across all the states. At present the road tax varies from 2% to 18% but soon the base rate will be 6% and the state government will then have the right to increase it from 6% to levels which suits it.

Road Tax In India To Be Standardized

Not only that, the government is also considering waving off permit fee for touring vehicles. Also the tax will be collected online which would make the procedure a bit more convenient. For some states where the rate is below 6%, the news is definitely not good. As far as states with higher tax rates, like Maharashtra and Karnataka, are concerned the respective governments are unlikely to decrease the rate.

At the same time, this will bring a relief to car buyers in the metro cities who pay much higher road taxes on their cars. The decision is yet to be made and there may or may not be a decision in favour of this, but this will certainly bring down outside state registrations done purely with the purpose to avoid higher taxes. Let us see when the new road tax rate is actually implemented across the nation and how well the consumers adapt to it. For more updates from us, sign up for our free email newsletter and like our official Facebook Page.

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