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.
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?