Tax rate on vehicles to be rationalised
Chandigarh, June 1
The state government has decided to rationalise the rates of tax on vehicles used for personal or special purposes by reducing the number of slabs and simplifying taxation structure, which is expected to improve tax compliance, create reliable database, reduce workload in offices and also reduce harassment of public as well as chances of corruption.
A decision to this effect has been taken at a meeting of the state Cabinet held under chairmanship of Chief Minister Manohar Lal Khattar here today.
In case of vehicles for personal purpose, two-wheeled vehicle up to the value of Rs0.75 lakh, tax at the rate of 4 per cent of the value of the vehicle would be charged, while two-wheeled vehicles above the value of Rs0.75 lakh and up to Rs2 lakh and tax at the rate of 6 per cent of the value of the vehicle would be charged.
Similarly, in case of two-wheeled vehicle above the value of Rs2 lakh, tax at the rate of 8 per cent of the value of the vehicle would be charged. Aside car drawn by the vehicles mentioned above and invalid carriage would be exempted from the tax.
In case of vehicles other than two-wheeled vehicle up to the value of Rs6 lakh, tax at the rate of 5 per cent of the value of the vehicle would be charged as tax, whereas such vehicles above the value of Rs6 lakh and up to Rs20 lakh, tax at the rate of 8 per cent of the value of the vehicle would be charged. Similarly, in case of vehicles above the value of Rs20 lakh, tax at the rate of 10 per cent of the value of the vehicle would be charged. — TNS
