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Centre to ensure uniform vehicle tax

Updated - 19/3/2010 - indianexpress.

 

The Centre plans to invoke a constitutional provision to end the wide disparity and diversity of motor vehicle taxes across the states. The idea is ensure that sundry taxes and levies on vehicles, including excise duty, road tax, registration charges and toll tax for plying on specified roads, are rationalised and made uniform across the country.


Currently, state-level taxes on vehicles vary widely not in terms of rates but also in their application. The rate of road tax ranges between 4% and 15% of the excise-borne retail price of the vehicles. While some states levy a lifelong road tax, annual levies prevail in others. Then there are other imposts like parking charges imposed by states like Delhi. The vehicle owner is also required to pay toll charges to operators of specified stretches of roads, as fixed by the National Highways Authority of India or state-level authorities. Currently, motor vehicle taxation is a state subject and the central government can only be an advisor in the matter. Although the Centre has been insisting on certain uniformity in motor vehicle taxes, the states have mostly ignored it, in the absence of a legal provision. The Centre is now considering making it mandatory for states to heed its advice in this regard.

 

www.indianexpress.com/news/centre-to-ensure-uniform-vehicle-tax/592756/

 

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