Bhubaneswar: The Odisha cabinet today approved a proposal to reduce registration tax on high-end cars.
In a meeting presided by CM Naveen Patnaik today, the Odisha Cabinet introduced new tax slabs on registration of personal cars.
"Luxury cars costing Rs 40 lakh and above was taxed at 20 per cent. They would now be taxed at 10 per cent," said Chief Secretary, Aditya Padhi.
According to the new slabs, 6 per cent tax will be levied on registration of vehicles costing up to Rs 5 lakh; 8 per cent on vehicles between Rs 5 lakh and Rs 10 lakh and 10 per cent tax will be charged on registration of vehicles priced more than Rs 10 lakh, Padhi informed.
Padhi said the decision in this regard came as the state experienced that after enhancement of tax in 2017, the sale of costlier vehicles have gone down in the state and people go to other states for registration of vehicles.
Therefore, the ultimate aim of the government for enhancing the state's revenue from motor vehicles is being defeated, Padhi pointed out.
The government also decided to reduce the registration tax on luxurious stage/contract carriers in Air Conditioned Deluxe and Sleeper and Fully Built Air Conditioned Sleeper categories.
In another decision, the Cabinet revised the lease rental of government owned IT Towers/ facilities both for core space and incubation space and modified the relevant provision of ICT Policy 2014, Padhi said.
The chief secretary said the step is being taken to encourage opening of more IT centres and start-ups in the state.
"Therefore, it is decided to reduce the rental charges for core space and incubation space in all designated government-owned IT Towers to Rs 20 per square feet for super built up area," he said.
In total, 11 proposals were approved by the cabinet, sources said.
(With PTI inputs)