Owning cars is going to be an expensive affair in Odisha with the state government imposing a raise in one-time tax collected on personal vehicles.
The state cabinet has decided to hike the one-time tax factoring in the growing influx of luxury vehicles into the Odisha market.
The hike would be done through an amendment in the Odisha Motor Vehicle Taxation Act, 1975. The amendment has been approved as per the recommendations of the expert committee appointed by the government to suggest revenue enhancement measures.
How Much Do You Have to Pay?
As per the revised tax, here’s how much you have to pay for owing a new car now.
- Cars costing up to Rs five lakh – A one-time tax of 6%
- Cars in the price range of Rs 5-10 lakh – 8% of the vehicle’s cost
- Cars in the price range of Rs 10-20 lakh – A one-time tax of 10%
- Cars priced from Rs 20 lakh to Rs 40 lakh – 12% of the vehicle’s cost
- Cars priced beyond Rs 40 lakh – 20%
At present, one-time tax on personal vehicles is collected at the rate of 5% of the cost of the vehicle or at the rate specified in Schedule III, whichever is higher.
Revised Tax for Goods Carriages
The one-time tax has also been enhanced in respect of goods carriages (whose gross weight does not exceed 3000 kg) from five per cent to six per cent.
For tractors and trailers, one-time tax of 3% would be imposed.
Estimated Additional Revenue from Revised Taxes
The additional revenue gain for the state through hike in one-time tax is estimated at Rs 66 crore per annum, said Sanjay Rastogi, secretary, commerce and transport.
Tax for Passenger Buses
The department has also proposed to revise the one-time tax of passenger buses. Earlier, the tax was fixed considering a bus will travel maximum 320 km in a day. With improved road conditions and technology upgrade, now buses are travelling nearly 600 km a day.
The state government has also proposed a green tax on vehicles that have crossed 15 years of age. The tax is aimed at discouraging ageing vehicles as they are found to be causing much collateral damage to life and property.
Courtesy: Business Standard, The New Indian Express