Haryana government has proposed an increase in the road tax that eventually will increase the price of the two-wheelers and cars in the state. The state government has approved the revision of the current road taxes for personal vehicles. According to the proposal, the tax rate for vehicles priced up to Rs. 20,000 will remain unchanged and is currently floating at a rate of 20 percent. The state cabinet has also decided to put taxes on Bidis so as to discourage its consumption.
The two wheelers carrying the price tag from Rs. 20,000 to Rs. 60,000 will be subjected to the tax rate of about 4 percent. Similarly, the two wheelers costing Rs. 60,000 and up to Rs. 2 lakh will be imposed with the road tax of about 6 percent. According to the press release from the government, vehicles costing over Rs. 2 lakh will be experiencing road tax rate of 8 percent. Prior to the tax revision, government was charging about 4 percent tax on vehicles costing between Rs. 60,000 to Rs. 4 lakh and 5 percent on the vehicles above 5 lakhs.
For all the four-wheelers new buyers will have to pay 3 percent road tax on models coming within the price range of Rs. 6 lakhs. On the vehicles falling between Rs. 6 lakhs and Rs. 10 lakhs road tax will be 6 percent. For the vehicles that cost more than Rs. 20 lakhs will now be subjected to service tax of 9 percent. Most of the experts believe that the road tax will be imposed on the ex-showroom price of the model along with the VAT.
The official statement of the government also state that the road tax imposed by the Haryana government after revision will still be lower than the tax rate that has been prevailing in the other adjoining states. Although the road taxes have been increased but most of the auto analyst believe that this will not be discouraging the confidence of the buyers in Haryana towards purchase of the new models. They are hoping that the sale of the vehicles will continue with the same pace. Reportedly a similar revision is also being considered by the Chandigarh administration.