July 17, 2024

The Bihar

Bihar's #1 Online Portal

Vehicles, bikes to get dearer

2 min read

Image result for buying cars, motorcycles automobilesPatna: Buying cars, motorcycles and other automobiles is going to become costlier in Bihar as the state government on Tuesday decided to enhance the road tax on them in light of less revenue despite high sales in the wake of the implementation of the Goods and Services Tax (GST) regime. The new taxation rates will become effective after a month.

For motorbikes and cars having a showroom price of less than Rs 1 lakh, 8 per cent tax will be imposed.

The tax will be 9 per cent for automobiles with showroom price between Rs 1 lakh and Rs 8 lakh. The tax will go up to 10 per cent for vehicles in the price range of Rs 8 lakh to Rs 15 lakh. And luxury bikes and cars with showroom price above Rs 15 lakh will attract a tax of 12 per cent.

Similar tax slabs depending on showroom prices have been proposed for personal and commercial vehicles having a seating capacity of up to 12 persons.

The decision came at a cabinet meeting that chief minister Nitish Kumar chaired here in the state capital, cabinet secretariat department principal secretary Arun Kumar Singh said on Tuesday.

The cabinet also approved the transport department’s proposal to hike tax on commercial goods vehicles depending on their weight in tonnes and passenger vehicles depending on their seating capacity and facilities. “Previously, a uniform tax of 7 per cent was imposed on all motorcycles and cars that were purchased in Bihar. Now it has been divided into four slabs depending on their ex-showroom prices,” transport secretary Sanjay Kumar Agarwal told The Telegraph.

Agarwal added that the need to revise the tax rates was felt after a review brought to light that sale of vehicles has increased after the implementation of GST, but the state government’s revenue had slipped.

The transport department’s revenue from road tax was Rs 1,500 crore in 2017-18 and the new taxation module is expected to increase it by Rs 200 crore in the current financial year.

Agarwal said that among private vehicles sold every year in the state, 85 per cent were motorbikes priced below Rs 1 lakh and the rest came in the other three slabs.

The transport department will upload the draft of new taxation module on its website on Wednesday for suggestions and feedback from the people, as stipulated in the Motor Vehicles Act.

Report on CM desk

The high-level committee formed to look into various issues and demands of contract employees working for the state government submitted its report to chief minister Nitish Kumar on Tuesday. The CM directed all concerned departments to take express action as per the recommendations of the report.

Courtesy: The Telegraph

Leave a Reply

Your email address will not be published. Required fields are marked *