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GST impact: Vehicles get costlier in Maharashtra as registration tax up 2%

Govt has decided to cap the tax on high-end imported cars at a maximum of Rs 20 lakh

Press Trust of India  |  Mumbai 

BS-III Vehicle, Bike, Scooter
Photo: Dalip Kumar

The has increased the one-time registration tax on private two- and four-wheelers by 2 per cent.

The hike was approved by the Cabinet yesterday to compensate for the loss of due to the abolition of octroi and local body tax following the implementation of the (GST), an official from the department said today.

The has, however, capped the tax amount for high-end imported cars at Rs 20 lakh as against 20 per cent of the total car cost that was being charged earlier.

"There were instances of (bought by people in Maharashtra) being registered in other where taxes are lower. This was causing loss to the state exchequer," the official explained.

"To avoid this, the has decided to cap the tax on high-end imported cars at a maximum of Rs 20 lakh, irrespective of the car price," he said.

The official said that earlier, the registration tax on two- and three-wheelers was 8-10 per cent, which has now been hiked to 10-12 per cent.

The cars running on petrol were earlier levied 9-11 per cent tax, which has been raised to 11-13 per cent.

For the cars running on diesel, the registration tax was around 11-13 per cent, which has been increased to 13-15 per cent.

For or cars, the tax has been increased to 7-9 per cent, from the earlier 5-7 per cent, the official added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 04 2017. 14:05 IST