BHUBANESWAR: If you’ve a penchant for those muscular, heavy-duty bikes, you will have to cough up more to the Transport Department as the amended Odisha Motor Vehicles Taxation Act now has a cost-based one-time tax rate.
Instead of a five percent flat taxation rate, the OMVT (Amendment) Act, 2017 has a five-slab tax rate calculated on the cost of the two-wheeler. The State Government notified the amended Act on November 21 and the new tax rates have come into effect.
Motorcycles which cost less than ` five lakh will be charged at the rate of five per cent while those in the bracket of ` five lakh to `10 lakh would be levied eight per cent tax. Similarly, the bikes in the slab of `10 lakh to `20 lakh would be charged at the rate of 10 per cent. The bikes in `20 lakh-`40 lakh cost bracket and those above `40 lakh would attract a levy of 12 per cent.
For cars too, a similar five-slab taxation rate has been created which means the four-wheeler passenger vehicles would now cost more. The vehicles under `5 lakh would be charged at six percent rate whereas those in the slab of `5 lakh to `10 lakh would be levied eight percent. A 10 percent tax would be charged from vehicles costing in the range of `10 lakh and `20 lakh. Those in the bracket of `20 lakh-`40 lakh and those above `40 lakh would attract a tax of 12 percent at the time of first registration.
The Government has, for the first time, introduced a Green Tax on both personal and transport vehicles which have completed 15 years of life. For all kinds of vehicles which are used for personal use, a Green Tax of `1,000 would be levied at the time of renewal of registration. For Transport vehicles, the Tax would be levied at the rate of `4,000. Similarly, tractors and trailers would also attract one time tax of three percent.
For passenger carriers like buses, the amended Act has introduced new slabs of taxation for their daily movement. The new rates will be charged as per four slabs of distance covered by the buses. Earlier, the rate was charged for daily movement of 320 km whereas three more slabs for 320 km-400 km, 400 km-480 km, 480-km-560 km and above 560 km have been added. The rates would be charged differently for ordinary and express buses.
This change in levy could upset the private bus operators of the State who had recently threatened a strike demanding a raise in passenger fair in view of changing fuel prices. “The MV Tax is most likely to go up from `11,000 to `21,000 which will pinch the private operators. The State Government has to factor this into the automatic fare mechanism,” said spokesman of All Odisha Private Bus Owners Association Debashish Nayak.The new taxation system would fetch the State substantial revenue.