THIRUVANANTHAPURAM: The budget has utilised almost all options to improve tax revenue generation in Motor Vehicles Department, the third-largest grosser for the exchequer. Popular two-wheelers and cars will cost more as Finance Minister Thomas Isaac proposed tax hikes for them.
Tax for bikes that are priced below Rs 2 lakh will go up by one per cent. Similarly cars below Rs 15 lakh will cost an additional 2 per cent. Despite a slowdown in auto industry, Isaac is confident of garnering Rs 200 crore from the tax hike.
To encourage re-registration of vehicles registered in Puducherry, the budget has waived off penalties. However criminal cases pending against them will continue. Vehicle owners need to pay tax from the date of obtaining NoC from Puducherry.From April, one would have to pay extra for fancy vehicle numbers.
The quarterly tax on multi-axle goods vehicles other than tipper category having registered laden weight more than 20,000kg has been reduced by 25 per cent. “We have seen several goods vehicle registrations shifting to neighbouring states that offer attractive rebates. The proposal is expected to see a shift,” said an official said.
Purchase value of cars priced above Rs 10 lakh will not factor in one per cent tax collection at source from the car dealer. First five-year tax for autorickshaws has been fixed at Rs 2,500. The tax on three-wheelers for private use and construction equipment has been hiked from 6 per cent to 8.