While the automakers and customers are rejoicing the reduction in prices, road tax on new cars and bikes (private vehicles) is set to go up in Maharashtra
As majority of the cars and two-wheelers get cheaper due to the recent implementation of GST, auto fraternity is quite positive about the sales growth in the coming months. While the automakers and customers are rejoicing the reduction in prices, road tax on new cars and bikes (private vehicles) is set to go up in Maharashtra, reports suggest. With octroi and local body taxes being subsumed in GST, the government will incur a massive loss of Rs 700 crore. In a bid to avert the losses, the government of Maharashtra has rolled-out the additional tax.
The tax levied on petrol-powered cars will be hiked from the current 9-11 per cent to 11-13 per cent. On the other hand, the diesel-powered cars that currently attract 11-13 per cent tax, will be also see a hike of 2% to 13-15 per cent. Read More – Now Pay A Hefty Sum For Roadside Parking In Delhi
Similarly, the two-wheelers, which earlier fell in the category of 8-10 per cent will now be taxed between 10-12 per cent. One must note that the tax on the new cars and two-wheelers will be levied depending on the price of the car, cubic capacity of the vehicle (two-wheelers) and the fuel type (CNG, diesel or petrol). To give an insight into the pros and cons of the additional tax, here we walk you through its implications.
The additional road tax will add up to the price of the car, resulting in slight increase. With customers paying additional 2%, some models are expected to cost same as before the GST implementation. That said, the buyers are unlikely to be impacted in Maharashtra. It is being said that the increased tax on diesel cars will lower the overall pollution levels in Maharashtra.
For those getting their new cars and two-wheelers registered from Daman-Diu union territories or Jharkhand, where the tax slab is lower will have to pay a hefty tax on imported cars. To avoid such instances, the tax on the imported high-end cars has been changed to Rs 20 lakh from the current 20% of the vehicle’s total cost.