GoM recommends uniform road tax structure for vehicles across country

The Group of Ministers (GoM) constituted by Union Ministry of Road Transport and Highways has proposed One Nation One Tax policy for seamless movement of commercial vehicles across the country. The two day meeting of GoM held in Guwahati, Assam was attended by transport ministers from Uttar Pradesh, Assam, Himachal Pradesh, Bihar, Goa, Kerala, Haryana, Chhattisgarh, Meghalaya and Jharkhand. The GoM is headed by Rajasthan transport minister Yoonus Khan.

Recommendations of GoM

Uniform road tax for vehicles across states: It will allow transfer of vehicles from one state to another without levying road tax. It will put check on people registering their vehicles in low tax states and running them in other states. It will also bring necessary relief to genuine cases requiring transfer of vehicles.
Tax Structure: Centre has the powers to decide principles on which  motor vehicles tax can be levied. The uniform tax should be based on invoice price of vehicles in three slabs. 8% tax on vehicles below 10 lakhs, 10% for vehicles costing between 10 -20 lakh, and 12% for vehicles above 20 lakh. Diesel vehicles may have to pay 2% extra taxes, while electric vehicles will be given 2% discount.
National passenger vehicles permit for passenger cars: There should be national bus and taxi permit on lines of such permit for goods transport. It will give the much needed fillip to public transport and help reduce road congestion and its attendant problems.

Month: Current Affairs - April, 2018