Taxing times are ahead for multi-vehicle owners, it seems. The State Motor Vehicles Department is planning to levy additional tax on private vehicles of same category registered in a single address.
According to Transport Minister Aryadan Mohammed, the proposal was mooted to set off the losses incurred while implementing the Centre’s order to rationalise MV taxes in states.
On Wednesday, Union Minister of Road Transport and Highways Oscar Fernandes had put forth the ‘rationalisation’ proposal at the meeting of state Transport Ministers in New Delhi. Reportedly, Fernandes directed the states to rationalise MV Tax - to levy a lifetime tax at the floor rate of 6 per cent on the sale price of two-wheelers, cars and light motor vehicles.
“The states have been given the option to set off their losses. The plan to impose additional tax on a second vehicle will also help control the ever-increasing vehicle population in the state,” Aryadan said.
Currently, road taxes in states vary from 2 per cent to 18 per cent. While some states, including Kerala, levy a 15-year lifelong tax, others collect annual levies. MV taxes are a major revenue earner for the state, amounting to Rs 1,950 crore in the 2012-13 financial year.