Haryana govt rationalises tax rates on vehicles

The Haryana government has decided to rationalise the tax rates on vehicles used for personal or special purposes by reducing the number of slabs.
Further, it has also decided to simplify taxation structure which will improve tax compliance, create reliable database, reduce workload in offices and also reduce harassment of public as well as chances of corruption.
These decisions were taken in a meeting of the State Cabinet held under the chairmanship of Chief Minister Manohar Lal Khattar here today.
In case of two-wheeled vehicles for personal use priced up to Rs 0.75 lakh, tax at the rate of 4 per cent of the value of the vehicle would be charged, whereas for two-wheeled vehicles above the value of Rs 0.75 lakh and up to Rs 2 lakh, tax at the rate of 6 per cent of the value of the vehicle would be charged.

Similarly, in case of two-wheeled vehicle above the value of Rs 2 lakh, tax at the rate of 8 per cent of the value of the vehicle would be charged.
In case of vehicles other than two-wheeled and priced up to Rs 6 lakh, tax at the rate of 5 per cent of the value of the vehicle would be charged, whereas such vehicles above the value of Rs 6 lakh and up to Rs 20 lakh, tax at the rate of 8 per cent of the value of the vehicle would be charged.

Similarly, in case of vehicles above Rs 20 lakh, tax at the rate of 10 per cent of the value of the vehicle would be charged, an official release said here.

For vehicles for special purposes, 6 per cent of the value of vehicle would be charged as tax in case of Excavator, Loader, Backhoe, Compactor Roller, Motor Grader, Mobile Crane, Dozer, Fork Lift Truck, Self Loading Concrete Mixture, besides other category of vehicles.
Likewise, one per cent of the value of vehicle would be charged in case of Fire Tender, Fire Fighting Vehicle, Mobile Clinic, X-Ray Van, Library Van, Ambulance and Animal Ambulance owned by Boards, Corporations, Public Sector Undertakings of state or central government or by Red Cross Society.
In case of vehicles used for personal purpose, including camper van and caravans, 12 per cent of the value of vehicle would be charged as tax.

On the basis of these rates, an estimated additional revenue to the tune of Rs 120 crore per year is expected on account of road tax from the vehicle used for personal use only.
The tax from the vehicles designed and used for special purposes will further add more revenue to the state exchequer, the release added.