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.
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.