The stage appears to be set for a hike in the life tax of all personalised vehicles. Taxes in respect of company owned vehicles and individuals owning second and subsequent vehicles are also likely to increase.
While lump sum tax of 9 % of the cost of vehicle is being levied on two wheelers, the Transport department has proposed to divide the vehicles into two categories — vehicles costing up to ₹50,000 will continue to be charged life tax at 9 % while the motorcycles whose price exceeds ₹50,000 are proposed to be charged at 12 %.
Changes are also proposed in respect of tax levied on three or four wheelers, including cars, jeeps under non-transport category, omni buses up to seating capacity of 10 and new motor cabs and motor cabs coming from other States that are entering into the rolls of the State by way of change of address or transfer of ownership. The existing lumpsum tax on these newly registered vehicles whose cost up to ₹10 lakh is 12 % and for vehicles exceeding ₹10 lakh is 14 %.
