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Old 10th March 2010, 00:16   #1
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Default Road Taxes Go Up in Rajasthan

Milking of average Indian Automobile customer is increasingly becoming the favorite sport of State and central governments across India. Automobiles seem to still be considered a luxury item and for this reason, Auto owners bear the brunt every budget.

Latest in this trend is Congress ruled Rajasthan. In the State budget declared today by Chief Minister and Finance Minister, Ashok Gehlot, Registering a car in Rajasthan is going to get dearer from today for vehicles above Rs. 2.5 Lacs (which only leaves Nano, 800, and Alto).

The change in Taxation is as follows:

Two Wheelers:

Category______________Old Tax %_________New Tax %
<100 cc _________________5_________________4
>100 cc _________________6_________________8

Four Wheeler:

Category_______________Old Tax %___________New Tax %
<2.5 Lacs_________________4_________________2.5
2.5 - 6 Lacs_______________5__________________5
6 - 10 Lacs_______________ 6__________________8
>10 Lacs_________________6__________________10

Major brunt of the new policy is going to affect vehicles costing upwards of 6 Lacs (Premium Hatch, Sedans, SUV, MUV). Incidentally, these vehicles also were at loss at central budget owing to increase 2% excise duty. A vehicle costing above 10L is now dearer by 6% since February. This means a minimum increase of Rs. 60,000/- for vehicles in this segment.

Add to this, we must not ignore the fact that VAT in Rajasthan for Automobiles is charged at 14% as opposed to more accepted 12.5% elsewhere.

Over all, A vehicle bought and registered in Rajasthan hereon will cost approximately 11% more expensive than its neighboring state, Haryana.

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