Tuesday, February 21, 2017

Motor vehicle tax structure simplified

As part of the motor vehicle tax simplification, the budget has made a lump sum vehicle tax compulsory for for the vehicles registered on or after April 1, 2017 in different categories and the old vehicles have been given an option of lump sum tax while continuing tax payment in recurring manner. This will generate Rs292.14 crore as upfront revenue for the state.

The lump sum tax on agricultural tractor was reduced from 3.5% to 3% and difference in tax rates on medium and heavy goods vehicles exceeding 7.5 tonnes was removed by proposing a uniform rate of 7% of the sales price of these vehicles. Also, 8% and 3.5% lump sum tax will be levied on sale price in case of private service vehicles and buses of educational institutes.

Citizens can now pay of motor vehicle tax through online banking and e-payment through cyber treasury will be effective from May 1. stamp duty and registration fees can also be paid online soon.

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