Well if you are a common man, then probably you must also have gone through all the headaches involved when transferring your vehicle’s registration to some other state. Sometimes the additional tax levied on the transfer of the vehicle in another state can have a huge dent on a middle-income person or common man to say. However, there is also another side to the coin. When it comes to buying a new vehicle (especially a 4-wheeler) most Indian households prefer to get their vehicle registered in a different state to save some money.
However, as per reports, the Government in an attempt to curb down tax evaders is planning to levy a common road tax across the length and breadth of the country on the lines of GST. A committee of Transport Ministers from various states, lead by Minister of Transport Rajasthan, Mr Yunus Khan has been assigned the task to work out a policy for the same. The committee has been given a 15 day period to submit its proposal.
Mr.Yunus Khan in a statement said, “The group recommends that the motor vehicle taxes should be charged by all the states on the basis of the invoice price of the vehicle. The group examined the taxes charged by various states and observed that the principles of taxation vary from state to state. The Central government has powers to decide the principles on which the motor vehicles taxes can be levied by the states”.
The group also recommended that the national passenger vehicles permits may be issued by the states for passenger vehicles.