11

Jun

Road Tax in India

In India, road tax is imposed by the respective state governments (lifetime and also annual for commercial vehicles) also, further there could be toll for specific usage of roads (charge depends on distance, type, etc.). At the time of purchase of the vehicle, the government levies GST (Goods & Services Tax) at the rate of 28% and additional cess is levied based on the cubic capacity of the engine of the vehicle(1% for small cars with CC< 1200 CC, 3% for CC between 1200 and 1500 CC, 15% for above 1500 CC). Electric cars are levied lower tax of 5%. The motor vehicles tax (called road tax) is calculated on the basis of various factors including engine capacity, seating capacity, unladen weight and cost price. Each state has different rules and regulations for charging the road tax. There is proposal to have uniform rules and also tariffs across the country in line with the government's initiative of having "One Nation-One Tax". In these days, in India there is a movement called "Digital India" in which every type of work related to every department is getting digitalized and "Ministry of Road Transport & Highways" has created a portal called "Vahan" for online road tax payment to ease the pain of paying of taxes to the government in offline mode. It is a very smooth experience to pay such taxes from home and saving time.