Current Affairs

Uniform Road Tax Structure for Vehicles Across India: GoM

The Group of Ministers (GoM) constituted by the Union Ministry of Road Transport and Highways has recommended a One Nation One Tax Policy to ensure a seamless movement of commercial vehicles across the country.
Uniform Road Tax Structure for Vehicles Across India: GoM

  • It was a two day meeting which was held in Guwahati, Assam.
  • The GoM is headed by Rajasthan transport minister Yoonus Khan.
  • The meeting was attended by transport ministers from Uttar Pradesh, Assam, Himachal Pradesh, Bihar, Goa, Kerala, Haryana, Chhattisgarh, Meghalaya and Jharkhand. 
  • If accepted, the recommendations will allow the transfer of vehicles from one state to another without levying road tax.

The recommendations

  • India should have a uniform structure of road tax for vehicles across states.
  • A uniform tax structure will put a check on people registering their vehicles in low tax states and running them in other states.
  • It will also bring necessary relief to genuine cases requiring transfer of vehicles.
  • The panel has proposed liberalisation of permit system for electric vehicles so as to promote alternative fuel for vehicles.
  • The panel has also recommended a national bus and taxi permit on the lines of such a permit for goods transport.
  • Centre has the powers to decide principles on which motor vehicles tax can be levied. The uniform tax should be based on invoice price of vehicles.
  • The GoM has recommended three tax slabs, 8 percent tax on vehicles below 10 lakhs, 10 percent for vehicles costing between 10 -20 lakh, and 12 percent for vehicles above 20 lakh. 
  • Diesel vehicles may have to pay 2 percent extra taxes, while electric vehicles will be given a two percent discount.
  • The annual growth rate in the public transport of the country is only 2% whereas in the private transport it is around 20%.
  • Therefore the GoM has recommended to give the much needed fillip to public transport and help reduce road congestion and its attendant problems.
  • A committee of five secretaries from the states of Assam, Uttar Pradesh, Tamil Nadu, Puducherry and Rajasthan has been asked to submit a report within 15 days to build further consensus on other charges and fee which vary from state to state.
Uniform Road Tax Structure for Vehicles Across India: GoM Uniform Road Tax Structure for Vehicles Across India: GoM Reviewed by Shweta Kashyap on April 21, 2018 Rating: 5

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