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Old 22nd March 2016, 12:33   #1
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Default Maharashtra government wants to increase vehicle tax

It's becoming an increasingly expensive affair to buy and own a vehicle and it doesn't look like the Government of Maharashtra is looking to do new vehicle buyers any favours. The Motor Vehicle Tax in Maharashtra is set to rise from April as the government has proposed an increase with the duty being levied based on the cubic capacity of the vehicle's engine.

“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,” said Maharashtra finance minister Sudhir Mungantiwar. Currently, the charge levied is 7% for private vehicles and 21% for company registered vehicles.

Under the revised, engine size-based system, private vehicles displacing up to 99cc will be taxed 8%, while those displacing between 100cc - 299cc will be taxed 9%. Vehicles displacing 300cc and above will be taxed 10%. For company registered vehicles and imported vehicles, all the mentioned taxes will double.

Source: Livemint

Last edited by Tushar : 22nd March 2016 at 12:36.
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Old 22nd March 2016, 12:42   #2
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Default re: Maharashtra government wants to increase vehicle tax

The article says that the company registered vehicle would be taxed 2x of the regular tax. Does that mean that company registered vehicles above 300cc would have 20% tax instead of current 21%.

I doubt if the government would actually reduce it. I think it would be three times the normal tax .
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Old 22nd March 2016, 13:49   #3
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Default re: Maharashtra government wants to increase vehicle tax

The worst part about all this is the terrible status of public transport in almost all of the cities. If the public transport were better, I am sure many would prefer using it rather than private vehicles.
The govt is making vehicles more and more unaffordable while doing nothing to service the need of inner city travel.
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Old 22nd March 2016, 14:44   #4
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Default re: Maharashtra government wants to increase vehicle tax

Thanks for the information. Our country being federally administered by states and states having the following subjects with them:
1. Land
2. Law & Order
3. Revenue

States are independent to frame policies which are in larger public good and are not ultra vires to the central rules or constitution and under this guise, the respective state governments had been framing various rules related to taxing the vehicle. Traditionally MH & KA had been known for charging obnoxious amounts for road tax and state of TN also not being so far. The recent KA Hon'ble High Court ruling, making collection of lifetime road tax from non KA vehicles as illegal is a welcome sign.

The way taxes and levies are being jacked up with each FY by the respective governments, I feel the day is not so far away that people will find it difficult even to afford and maintain a decent TWH. The clamor for GST shall increase in the coming months and on the same lines car enthusiasts have been demanding ONE INDIA, ONE ROAD TAX rule. Whenever, a set of rule is in place people will try to find a loophole to bypass it. Vehicle Road Tax in TN pushed many buyers from Chennai and neighboring districts to purchase their vehilces in the UT of Puducherry.

Its time the Central Government amended CMV Act of 1989 and inserted a clause of one nation, one road tax rule.
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Old 22nd March 2016, 17:25   #5
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Default re: Maharashtra government wants to increase vehicle tax

Quote:
Originally Posted by MDED View Post
The clamor for GST shall increase in the coming months and on the same lines car enthusiasts have been demanding ONE INDIA, ONE ROAD TAX rule.
This is the need of the hour!

Most of the luxury cars in Mumbai are registered outside Mumbai - GJ / DD / DN / CG / CH / JH being the top states that are gaining the revenue lost by the Govt. of Maharashtra.

Ideally, with one road tax across India, those states that see maximum registrations (and users) would benefit the most in terms of infrastructure and the like.
Sadly, the Govt. doesn't seem to realise this.
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Old 22nd March 2016, 18:08   #6
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Default re: Maharashtra government wants to increase vehicle tax

How reliable or accurate is the information in this website? Haven't read about it in the newspapers - normally this would have made it to the first page in the newspapers.

Also based on the cubic capacity, it looks like this amendment is targeted only to 3 wheelers or most probably transport vehicles. It it had included 2 wheelers they would have a broader category of the engine capacity.
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Old 22nd March 2016, 19:20   #7
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Default re: Maharashtra government wants to increase vehicle tax

MH seems to be following the rule 'Loot sako to loot'. Highest fuel price, and now trying for the highest road tax.

I fully support MDED in asking for a common road tax across the nation, and also easy transferability. With registration information online what is the problem. The RTO and local dada will loose his bakshish!
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Old 22nd March 2016, 19:57   #8
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Originally Posted by v12 View Post
How reliable or accurate is the information in this website? Haven't read about it in the newspapers - normally this would have made it to the first page in the newspapers.
Very reliable, much more reliable than other prominent English daily. It's part of Mint newspaper, so it would have come on mint newspaper also.
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Old 22nd March 2016, 22:49   #9
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Default re: Maharashtra government wants to increase vehicle tax

It's really funny how Karnataka and Maharashtra Govt. (and many more) think.

If you live in Tier I cities and sometimes don't want to travel in overcrowded and uncomfortable public transport system. Auto & taxi wallahs dislike your travel timings and destinations. Dare to buy a 'car' and the govt will tax you exorbitantly.

In case of Tier II cities, there is no reliable and enough public transport present, Ola & Uber apps say 'coming soon to your city' and you dislike shared auto adventures but still happen to buy a car for your travel needs, just remember, the govt will tax you exorbitantly.

In Tier III cities, towns and villages where public transport is like a unicorn (everybody thinks that it exists but no one has seen it) at many places and so you bought a car to visit places, sorry, you did a mistake and in punishment the govt will tax you exorbitantly.

When will these governments stop seeing vehicles as luxury items even when they are failing to provide basic and necessary facilities to public.

Last edited by NPX : 22nd March 2016 at 23:12. Reason: typo
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Old 23rd March 2016, 17:44   #10
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Default Re: Maharashtra government wants to increase vehicle tax

When does this come into effect. Is it immediate? I did a quick browse on Carwale.com for car prices and it shows that RTO tax as about 10 % for most vehicles on the ex showroom price.

I think the best time to have purchased any car was in JAN / FEB this year. One could have got discounts on the 2015 stock as well as dodged the Central budget hike in pricing. The Polo GT Tsi I was eyeing this year gets even more expensive and there will be more guilt to be killed.
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Old 24th March 2016, 23:18   #11
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Default Re: Maharashtra government wants to increase vehicle tax

The state budget has already proposed increase in State taxes (18/03/2016)on all categories of automobiles sold in the state.

An excerpt:-

Motor Vehicle Tax enhanced on two wheelers and three wheelers owned by individual. Tax to be based on engine capacity – upto 99cc – 8%, 100cc to 299cc – 9%, 300cc and above – 10%. Institutional and Imported Vehicles to be subjected to double the rate of tax.

Believe it is effective from 01/04/2016. All motor vehicles billed on or after this date may be levied the new tax rates.

Last edited by anjan_c2007 : 24th March 2016 at 23:19.
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Old 27th March 2016, 19:50   #12
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Default Re: Maharashtra government wants to increase vehicle tax

Quote:
Originally Posted by MDED View Post
Thanks for the information.

Vehicle Road Tax in TN pushed many buyers from Chennai and neighboring districts to purchase their vehilces in the UT of Puducherry.

Its time the Central Government amended CMV Act of 1989 and inserted a clause of one nation, one road tax rule.

7% for four wheeler ? Please recheck.

AFAIK Four wheels above 10L have 12% tax rate & vehicles bought on company name have 24% , Last year it was 10% & 20% respectively.

We have bought XUV W8 (company owned) last year (feb 2015), payed 20% road tax & Payed 12% for Safari varicor400 this January.

Last edited by jeepster : 27th March 2016 at 20:07.
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Old 23rd September 2016, 10:48   #13
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Default Re: Maharashtra government wants to increase vehicle tax

http://www.hindustantimes.com/mumbai...9kpF2EoeL.html


There is another news of tax hike to fund 250 crore road safety corpus.

Even after all these hikes, the contracts for road related works (even road safety related works) are still done by private players and we are again charged in form of TOLL to ride on these roads with almost nil road engineering and safety aspects. So the circle continues.
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Old 23rd January 2017, 14:00   #14
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Default Re: Maharashtra government wants to increase vehicle tax

Is the above new taxation principle implemented?
None of the RTO sites for Pune mention anything regards to the same. The website still mentions the 7% for new vehicle registration.
And last week I again got a call from the dealer for the registration of my bike that they need another 400Re for the registration/taxation as some fees have been increased.
As per them the 10% rule got implemented in Sept-2016.

Cheers!
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Old 23rd January 2017, 14:11   #15
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Default Re: Maharashtra government wants to increase vehicle tax

Quote:
Originally Posted by Tushar View Post
...Under the revised, engine size-based system, private vehicles displacing up to 99cc will be taxed 8%, while those displacing between 100cc - 299cc will be taxed 9%. Vehicles displacing 300cc and above will be taxed 10%. For company registered vehicles and imported vehicles, all the mentioned taxes will double.
Don't forget to add the 4.5% BMC tax on new vehicles that are registered in Mumbai. The tax which pays for the the potholed roads we drive on each day.
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