[kutts]

The Kerala Govt has put forward in the Transport Development Council meeting held by the Central Govt that it will start imposing additional tax on the second car bought by a family.

The minister stated that owing to the rising number of vehicles in the state, it is required that a married couple should ideally have only a single car.

I feel it is such a ridiculous decision. I wonder if they have factored in cases where the husband and wife work is extremely different directions. Or how about cases where one of them is temporarily located at another city or travels a lot for work. Not to forget about cases where you have an old M800 that you use to run for odd errands and you want to buy a new MUV for the larger family.

This is also going to impact the auto makers, especially the smaller cars since people would refrain from buying new smaller cars if they have a larger one already.

The government should focus in widening the roads, putting in place a proper and effective mass transport system before implementing such irrational ideas.

[zenren]

Originally Posted by kutts

The Kerala Govt has put forward in the Transport Development Council meeting held by the Central Govt that it will start imposing additional tax on the second car bought by a family.

The minister stated that owing to the rising number of vehicles in the state, it is required that a married couple should ideally have only a single car.

This is also going to impact the auto makers, especially the smaller cars since people would refrain from buying new smaller cars if they have a larger one already.

Couple of points to note here:
1. Road tax in Kerala is just 6%, when compared to 14% in AP and 18% in KA. Even with a higher tax for second vehicle, it'll still be lower than what other states charge for the first vehicle.
2. Higher tax for second vehicle is already in place in other states, including AP where the first vehicle is already taxed more than twice the tax in Kerala.
3. Govt. has not banned the second vehicle, they just attract a slightly higher premium. I'm sure the additional tax would be less than what owners spend on accessories.
4. All this additional tax would be peanuts compared to the what we end up spending for fuel with just Rs.1 increase in fuel price.


I don't really see a reason to crib just because the owner has to pay a little more than what he pays now. I've purchased Swift in KL and AP - VDi in KL turned out to be cheaper than VXi in AP!

[vinair]

I would rather appreciate the move. If I am able to afford a second car, why would I cry on paying extra tax?

No family which has invested everything they had on buying a single car would ever dream of buying another car just for convenience sake.

[ArunV]

How is govt going to track the purchases? for e.g husband has a car and wife is buying one more in her name?
What if father and son buys one car each, son yet to get married.

So from now on, people will prefer to sell their car before buying a new one. Also will make sure that ownership is transferred after the sale. Big blow for used car dealers.

[vindrider2626]

Why cant a person who buys the second car pay a little more tax?It wont be too much burden on his part,The cost of petrol has gone up from 50rs to 75 in the last 3 years,have we put any control on our cars usage pattern?

[StarrySky]

Originally Posted by zenren

Couple of points to note here:
1. Road tax in Kerala is just 6%, when compared to 14% in AP and 18% in KA. Even with a higher tax for second vehicle, it'll still be lower than what other states charge for the first vehicle.

6% tax is only for vehicles priced less than 6L. It goes up to 15% for vehicles priced higher than 15L.

[swiftnfurious]

1. How does this funda work??!! Does it mean that the relation involves ONLY couples?

2. And what will be the tax on the second vehicle?

3. How do they find out whether one of them already have a car?

4. How about buying a pre-owned second car?? No additional taxes?

Originally Posted by zenren

Couple of points to note here:
1. Road tax in Kerala is just 6%, when compared to 14% in AP and 18% in KA. Even with a higher tax for second vehicle, it'll still be lower than what other states charge for the first vehicle.

It is NO more a flat 6% in Kerala. I think the slabs are like below

Cars less than 6L --> 6% (Updating 5L to 6L based on Starry Sky's post)

6-10L --> 8%

10-15L --> 10%

above 15L --> 15%

And just because Kerala has a lesser RT, people should also bear additional taxes in any form??

I for one do NOT mind paying additional taxes if the facility is good as well. I am from a small town and over the years, the traffic has grown exponentially while the width of the road has been the same for the last 25 years! How do you justify that?

Between, I am NOT talking about some crappy town road, I am talking about NH220 !

Originally Posted by zenren

2. Higher tax for second vehicle is already in place in other states, including AP where the first vehicle is already taxed more than twice the tax in Kerala.

What is the tax levied on the second car there? Normal rates itself which apply to the first car?

[kutts]

All states will move to a minimum uniform tax rate and also the norms for inter state transfers have been defined properly.

http://netindian.in/news/2013/10/23/...mvs-6-sales-pr

[Gansan]

Good move. I think all states must follow this. But why cars alone? Why not a second two wheeler, or even a second vehicle in the family, irrespective of what the first one is?

[zenren]

Originally Posted by swiftnfurious

1. How does this funda work??!! Does it mean that the relation involves ONLY couples?

2. And what will be the tax on the second vehicle?

3. How do they find out whether one of them already have a car?

4. How about buying a pre-owned second car?? No additional taxes?

No idea how Kerala govt is planning to implement it, since this spouse clause is something I've not heard till now.

AFAIK, policy in AP is that if your name/details already exists in their records, then you pay an extra 2% road tax. Even if you sell your only car and buy a new one, higher rate is applicable. I would put it more as a 2% discount for the first time you purchase a car. Spouse can enjoy the lower rate for their 'first car' too.

Since it is life tax, pre-owned cars would have the tax already paid by the first owner based on his status. No change there I guess.

Based on what the minister said to the press, we might still get the lower rate if we sell our existing car and buy a new one.

It is NO more a flat 6% in Kerala. I think the slabs are like below

Cars less than 6L --> 6% (Updating 5L to 6L based on Starry Sky's post)

6-10L --> 8%

10-15L --> 10%

above 15L --> 15%

And just because Kerala has a lesser RT, people should also bear additional taxes in any form??

Thanks, I haven't bought a car/bike since 2008. So my rate info was a bit outdated I guess

What is the tax levied on the second car there? Normal rates itself which apply to the first car?

Tax rate is 2% extra if it is not the first time you are purchasing a car. Rates used to be 12% & 14% a few years back; not sure if it increased again. The online links for tax rates are no longer working!

[Warwithwheels]

Good move. Should help in reducing the Carbon Footprint in the long run

However, I foresee a lot of loopholes present in the system to circumvent the law. Unless the vehicle purchases are linked to a fool proof unified ID system, people will continue to circumvent the law.

[revintup]

Originally Posted by vinair

I would rather appreciate the move. If I am able to afford a second car, why would I cry on paying extra tax?

No family which has invested everything they had on buying a single car would ever dream of buying another car just for convenience sake.

Would you appreciate the move if the govt decides to hike the tax on your first car as well? You could afford a car.

No family which has invested everything they had on building a two room house would ever dream of buying a car so all car owners must be rich.

In India, only a very small percentage of population is able to afford a car and if the BPL line is Rs 32, all car owners are easily rich and so should not cry if the vehicle tax on a whole is increased by an additional 10% or 20%.

Buying a 2nd car is indeed for convenience. Isnt even the first buy just for convenience sake over the public transportation?

Originally Posted by vindrider2626

Why cant a person who buys the second car pay a little more tax? It wont be too much burden on his part,The cost of petrol has gone up from 50rs to 75 in the last 3 years,have we put any control on our cars usage pattern?

True, such a person could well afford the additional 6% tax. But when I am already paying such a heavy tax on every single litre of petrol that I buy to get the same car running, i feel shortchanged.

And next is what, additional tax for more than one child to bring the population under control?

[zenren]

Originally Posted by Warwithwheels

However, I foresee a lot of loopholes present in the system to circumvent the law. Unless the vehicle purchases are linked to a fool proof unified ID system, people will continue to circumvent the law.

Since all cars cost more than 50k, providing owner's PAN to RTO could be mandatory and should be good enough I guess.

[sgiitk]

They must have gone Bonkers. Working couples, or major children; how do they accommodate them? Typical left mindset.

[naveen.raju]

Originally Posted by zenren

Since all cars cost more than 50k, providing owner's PAN to RTO could be mandatory and should be good enough I guess.

PAN is now compulsory for registration. The owner will have to submit this.