What is One Nation One Road Tax?
One Nation One Road Tax is a proposal from GST council to make one road tax across the country just like the Goods and services tax. Currently, there are different taxes across the country in different states according to the pre-decided rates but now it is being discussed to apply a single rate of road tax across the nation. The discussion will be held among the top government officials and transport ministers from all the states.
Delhi Govt: Road Tax Will Not be Charged from Electric Vehicles
The government of Delhi has announced to forgive road tax on the electric vehicle so as to waive off the electric vehicles. The department of transport has been notified to forgive tax on electric vehicles. The process of consideration of tax has already started. This suggestion has been asked by the people. After 3 days to post a suggestion, it will get an excuse. The Delhi government has considered road tax on the vehicles running from the battery. Delhi will lead the country in waiving off the electric vehicles. The registration tax also gets waived off on the buying of vehicles.
Latest Update
- The govt of the department will not renew the certificate of registration of vehicles, after elapsing 15 year from 1st April 2022. The new rule will be applied to all the government dept (central, state, UT, PSUs), municipal bodies & autonomous bodies. Read Notification
Current Car Taxes in the Indian States
| State Name | Current Tax Rate/INR |
|---|---|
| Rajasthan | 4% to 10% |
| Himachal Pradesh | 2.5% to 3% |
| Haryana | 3% to 9% |
| Madhya Pradesh | 5% to 9% |
| Gujarat | 6% |
| Kerala | 6% |
| Punjab | 8% |
| Uttarakhand | 6% to 8% |
| Uttar Pradesh | 7% to 10% |
| Tamil Nadu | 10% to 15% |
| Maharashtra | 7% to 14% |
| Andhra Pradesh | 12% to 14% |
| Karnataka | 13% to 18% |
| Jammu Kashmir | INR 6000 to 20000 INR |
| Tripura | 410 INR to 825 INR |
The Government is set to release a new system of taxation very soon which will be unifying the road tax. This will help protect the revenue of the state. Road Tax is paid during the registration of the vehicle in a particular state. The Centre is trying to make the states on board sharing the vehicle registration data on the Vahan Website.
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Get to know all the latest notification on GST E Way Bill as per official portal of the Indian government. Also, we showcased the latest notification for interstate and intrastate transactions in PDF format
This move will bring relief to automobile buyers which will protect the automobile buyers. Altering the revenue system can affect the state’s revenue and that is why the states have been opposing the implementation of the uniform system of taxation of road tax.
Currently, each state is having a separate system of taxation. In 2018, a uniform system of one nation one road tax structure for vehicles across the states has been suggested. This is aimed at reducing the uniform system across the nation.
The Chairman of Maruti Suzuki India Limited said in an interview in September that due to higher road taxes, the sales of vehicles have been dropping in the state. Some states have reported a decline in sales especially at the lower price point.
This is the concern for most of the states as it was discussed in a recent meeting between the center & the states. Due to the differential tax rate system prevalent in the states, the states having a higher tax rate are witnessing a drop in the sales of the vehicles. At present in India, fewer states have higher tax rates Grab the information of revised GST slab rates on consumer products in India, Although the GST council finalized the slab rates like 5%, 12%, 18% and 28%. Read More as compared to many other states. The taxes in those states can be reduced and made comparable with the other states.
The Automobile Executive said that the center is trying to build a consensus through delegation in order to implement a uniform structure across the nation.
Currently, each state has a different formula for calculating the tax rate which leads to an anomaly in the final amount. The Automobile industry has been pushing for a uniform road tax structure. This is a concern for most of the states and union governments that the manufacturing of vehicles is getting impacted due to the different taxation systems. Hence a uniform taxation system will create an even playing field for the states and the union territories.
I request the Union Minister of Transport, Shri Gadkari, one of the best ministers of Modi cabinet, to urgently expedite the `One nation one tax` policy on personal vehicles to earn laurels from millions of vehicle owners ,manufacturers etc. This will be a great service towards the stake holders, numbering in crores. Should we expect quick decision Minister, please ?
Now the Government of India is planning to introduce BH Series registration number. However, presently this facility will be available on voluntary basis to Defence personnel, employees of Central & State Govt; Central and State PSUs; and private sector companies having their offices in 4 or more States/UTs.” How about other persons working in private sector and returning to home state after retirement/voluntary retirement. This facility should be extended to such category as well. In any case the road tax need to be paid in every two years under BH series registration. Therefore, it should be made optional. This will facilitate any persons who will have plan to move to another state, he should be free to move and pay the next slot tax in the other state. In fact this should be implemented in the same manner as GST. The GST paid goods can freely move to any state/UT. Similarly, once the road tax is paid in any state, the vehicles should be allowed to ply in any road in any state/UT as the roads are constructed by NHAI under central funding.
With respect to the long-spoken ONE NATION ONE ROAD TAX, many higher-taxed states may not be agreeing to this proposal considering the respective states’ revenue loss. There is an alternative and easy measure that can be introduced i.e collection of road tax annually, instead of collecting tax at the beginning of registration for 15 years in one go. By this arrangement, when the car is registered in a state where he is presently staying and wishes to take the car to another state where he moves his residence or workplace. If the annual collection of road tax is introduced, it will be easy for Indian citizens to move their vehicles freely to any state they wish and do the re-registration in that state and pay the road tax at the rate applicable in that state.
This means, at the time of first registration of a private passenger vehicle in any state, he will be liable to pay road tax for the first year. By any chance in the second year and subsequent year, if he moves to another state, he can obtain NOC from the home state and register in the new state and pay the road tax in that state at the respective percentage at the time of re-registration. By adopting this measure, the government is not losing revenue but will be collected over a period of 15 years, instead of one first year one time. Road maintenance is not done only once, they keep on maintaining occasionally and accordingly road tax can also be collected annually.
I purchased a Maruti alto dlxI car & registered in Lucknow Utter Pradesh on 05-02-2009 and paid one time road tax. I am now shfting to the state of Maharashtra.
I am told that I will have to pay 11% of the purchase price of the car in Maharashtra.I shall be paying full 15 years tax whereas I will be able to use the for 2years and 4 months.
This is not justified
Awaiting impatiently for this one nation one tax rule be implemented.
It is more than important, every indian should be treated at par. Like GST one nation one road tax is the demand of bharat.
Urgently One Nation one road tax policy to be implemented by the government. Eagerly waiting for this.
Karnataka is highest road tax slab for two wheeler falling in more then 1 to 2 lacs bike in 18 % plus cess over all 18+1.98% is paid for registering a new bike why such huge tax to be paid in Bangalore will there be a sooner resolution for it i am planning to buy a bike due to this it is confused to buy or purchased in other state
Private vehicles registered outside state and running without any NOC are illegal. But most of the owners who are woking in pvt .sector has no other option because of huge amount to be paid for road tax . Now a days obtaining pollution certificate for vehicle registered in other states also have stopped. Every time during the naka cheque we are penalised again and again.
Waiting for one India one tax for personal vehicles. I am holding a transferable job and paying 4.o lakh rupees income tax, but unable to buy a car because of individual state tax. What is the advantage of taxpayers, please anyone can explain?
Is there any improvement on the One nation one road tax?
Recently I haven’t seen any news on this subject.
Due to COVID-19, it is not safe to commute in public transport, So I purchased a second-hand Car in AP (my hometown).
I am working in Chennai and I have to travel between TN and AP (my old parents are in AP). For this, I am ending up paying fines. even I am paying ‘n’ number of toll gates (through FastTag).
I am having all the DOC’s.
this is really annoying, frustrating and I am losing my hard-earned money.
Any solution for this?
To whomever, it may concern.
I’m drafting this mail with utmost frustration. I’m a resident of TN I have my own house in Chennai. Now I’m married and settled in Bangalore I got a second hand two Wheeler in KA to commute locally. As my parents are old and unwell, I have to shuffle between two stats and sometimes stay for months in Chennai. I have met almost everyone in RTO dept as on parivahan there is an option to pay road tax without obtaining NOC but unfortunately, it only works for commercial vehicles. There are logins only for departmental and dealers. Vahan 4.0 does not work for most states as well. I have invested so much time. In my own country I’m not able to use my own vehicle it’s sad.
The head of my local RTO in Chennai told me that road tax can be paid only after I obtain NOC for KA. But when I approached a driving school they said they will get my road tax paid without NOC it’s confusing. I can’t understand why we should run around so much in this time and era just to pay to ride my bike in my country. I can understand there a different% in different states but can things be made easier for the common man? This one national one tax a single portal and a single forum is the answer to all these issues I plead with the govt to make this possible for us.
I feel bad for you. Nothing much is gonna change in our current political setup. One way or the other every other govt is trying to squeeze the last drop of sweat and blood from the taxpayer. Unless a true leader who understands the taxpayers’ frustration comes to the correct position, this loot will continue. I was just doing some research on RTO as I am planning to buy a car and found this article. We can only hope and pray that something good happens to the country. Rest all is an eyewash right now. Gadkari tweeted a few days ago that many features have become online.. Nothing as such has happened. I sold my bike recently and had to followup at multiple levels to get it done.
We expect quick response by GOI
AND EXPECT A LOT FROM MODI GOVT
Is there any developments on this rule, when is this rule going to be implemented.
I have just written to PM on this.
Not sure if all the posts will be read as I am sure people might write emails on millions of issues, but yeah I have done my part to see this change.
Thanks
Why the karnataka government taking highest tax
There is no proper roads also
When it will be implemented. Is government looking into this?
Hello Narendra,
Government is silent on this.
Please refer to my reply to Nitin Jain. Every citizen should write to union transport minister and the PM.
Every body is suffering.
Hi Prateek,
Is there any organized forum to take it up to the Govt.! Otherwise evry other stake holders are having their lobby.
I paid the 4-5% lifetime tax in the UK in 2010 and I am shifted in AP / Telangana where the tax is 14-16% so after this ruled out do I need to pay the difference or no need to pay anything extra.
Also, do I need to change the number plate from UK to AP? Currently facing problem to sale my vehicle in AP because it is registered in the UK so after implementation of this can I sell my UK vehicle in AP easily?
Hello Mr. Nitin,
Even if government make one road tax regime across India, when a person will move vehicle to another state due to any reason, the transport department (RTO) will certainly ask road tax at the time of registration of vehicle in that (other) state. The other state should register the vehicle by charging registration fee/charge for assigning new registration number of that state. Transport Department (RTO) who collected the road tax must pass on the un-utilized road tax to the other state in which vehicle is moved. But it is not done.
Issuance of NOC on moving the vehicle from one state to other should be completely online because details related to vehicle is available on parivahan/vahan portal across India. This will curb unscrupulous means applied by Agents, transport department (RTO) and the police department.
Needless to say, it is herculean task to get the NOC/refund of tax paid to RTO and get the vehicle registered in other state.
Since your vehicle is register in UK and plying on the road of AP, there are three option for you:
1. Take the vehicle to UK and sell it
2. Take NOC from transport Department (RTO) UK, get the vehicle registered at your new address in AP of other place where you live then sell it.
3. Sell the vehicle in exchange offer or sell it through a dealer who deals in second hand vehicle like cars24.com etc.
The problem is being faced by all particularly by those persons who are in private job and moves frequently from one state to other.
I have written an e-mail to union transport minister and the PM on this problem. I am of the view that every citizen should take this issue. This is an issue of a common man.
When they are going to apply this rule?
After discussion in 28th council meeting the rule if agreed then it will be applied through notification.
28th Council meeting is over and tomorrow i.e 28 Sept 30th council meeting to happen
Hello Mr. Shashank,
So far government is silent on this.
eagerly waiting for urgent implementation of the same
Any update on One nation one road tax in 28th GST Meeting?
No such update.
The meeting was on July 21st. Per previous news, if everyone agrees one nation one road tax will be in place by Sep 1 2018
But the meeting outcome is still unknown
Kerala 6% ? phew its 6 -20 %