
New Delhi: Group of ministers (GoM) constituted by the Union road transport and highways ministry has recommended a uniform structure of road tax for vehicles across states. The GoM is headed by Rajasthan transport minister Yoonus Khan met on Thurday in Guwahati.
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 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.
“A uniform tax structure will put a check on people registering their vehicles in low tax states and running them in other states. This would also bring necessary relief to genuine cases requiring transfer of vehicles,” a road ministry spokesperson said.
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 be 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 lakh, and 12 percent for vehicles above 20 lakh. 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.