Automobiles including bikes, cars and public transport vehicles like auto rickshaws will now cost more in Maharashtra from April after the state government proposed to hike the Motor Vehicle Tax on all vehicles. With increased taxes, the government is planning to generate added revenue in order to batte against one of the worst droughts in the state’s history.
Presenting the budget on Friday, finance minister Sudhir Mungantiwar said the government will revise the existing Motor Vehicle Tax system. “Instead of levying tax on the basis of whether the vehicle is registered as a personal vehicle or company or office vehicle, we now propose to levy Motor Vehicle Tax on the basis of the cubic capacity of the vehicles,” the minister said.
Now, under the revised system, private vehicles up to 99cc will attract eight per cent tax. Those between 100cc and 299cc 9 percent while the ones above 300cc will be taxed 10 per cent.
In case of purchase by companies and undertakings, and on imported vehicles, the tax rate will be double the respective one, says the budget report. For instance, a company vehicle above 300cc will attract a tax rate of 20 per cent now.
Diesel and petrol prices will also go up
Currently, the state charges motor vehicle tax at 7 per cent for private vehicles and 21 per cent for company or office-registered vehicles.
The same tax structure will be applied to imported vehicles depending on their displacement capacity and registration.
There is more bad news for car and bike owners. Petrol and diesel are in the list of products that will continue to be taxed more due to the drought in the state.
With the proposed rates for the 2016-17 fiscal year, the government is estimated to earn anoverall net additional revenue of Rs 363 crore.