Vehicles to cost more after Cabinet approves revision in tax regime
Bhubaneswar: The State government today approved the proposal to revise Motor Vehicle taxes which will see a rise in the taxes levied on various classes of vehicles. Taxes are likely increase starting from motorcycles, cars, jeeps, school busses.
The decision in this regard was taken at the cabinet meeting here chaired by Chief Minister Naveen Patnaik.
A proposal for the amendment of the Odisha Motor Vehicle Taxation Act, 1975 would be placed before the Assembly, said Chief Secretary G C Pati.
“It is necessary to effect amendment of the OMV Act for mobilisation of additional resources for the state on the basis of the suggestions of an Expert Committee headed by Sanjib Chandra Hota. The state will generate an additional Rs 66 crore after amendment of the OMV Act,” Pati said.
As per the revised tax, cars costing up to Rs five lakh would have to shell out an one time tax of six per cent of the cost of the vehicle, while those priced in the band of Rs 5-10 lakh would be charged at eight per cent.
The one time tax rate has been pegged at ten per cent for cars in the price range of Rs 10-20 lakh and 12 per cent for cars priced from Rs 20 lakh to Rs 40 lakh. Cars priced beyond Rs 40 lakh would be charged at 20 per cent.
At present, one time tax on personal vehicles was collected at the rate of five per cent of the cost of the vehicle or at the rate specified in Schedule III, whichever was higher, Pati said.
The one time tax has also been enhanced in respect of goods carriages having gross weight not exceeding 3,000 kg from five per cent to six per cent. For tractors, trailers and battery run vehicles, an one time tax of three per cent would be imposed.
The state government has also proposed a tax on vehicles, which were 15 years old. The tax was aimed at discouraging ageing vehicles as they were found to be causing pollution, Pati added.