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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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 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 %