Chandigarh: Cars and two-wheelers in Haryana will now cost more as the state government on Friday decided to hike road tax.
The state cabinet which met today also decided levying VAT on bidis to discourage consumption.
It approved the Transport Department`s proposal to revise the existing rates of road tax for the vehicle used for personal purposes, an official release said.
For two-wheelers costing up to Rs 20,000, the rate of road tax will remain unchanged, which is two percent.
For two-wheelers costing more than Rs 20,000 and up to Rs 60,000, 4 per cent tax would be levied. Similarly, it would be 6 per cent on vehicles costing above Rs 60,000 and up to Rs 2 lakh.
The road tax will be 8 percent on vehicles having cost of above Rs 2 lakh, an official release said here.
Earlier, 4 percent and 5 percent tax was levied on vehicle costing Rs 60,000-up to Rs 4 lakh and over Rs 5 lakh respectively.
Similarly for four wheelers including cars, owners will have to pay a tax at a rate of 3 per cent for vehicles costing up to Rs 6 lakh.
The rate of six percent will be applicable for cars costing between Rs six lakh and Rs 10 lakh.
For cars costing above Rs 20 lakh, the rate of tax will be nine per cent. The tax shall be levied on ex-showroom price of the vehicle including VAT.
Previously, vehicles costing up to Rs 5 lakh were charged 2 per cent, Rs 5-10 lakh at 4 percent, Rs 10-20 lakh at 6 percent while 8 per cent on vehicles costing above Rs 20 lakh.
The release said that the Punjab Government has already revised its rates and is charging a minimum motor vehicle tax of six per cent on four wheelers from the year 2012. A similar proposal is also under consideration of the Chandigarh Administration, it said, adding the rates of road tax being charged by Delhi Government are also on higher side.
The rates of road tax to be charged by Haryana Government after revision will continue to be on the lower side as compared to the rates prevalent in the adjoining states, it pointed out.
Meanwhile, with a view to discourage the consumption of bidis, the state government decided to levy VAT at a rate of five per cent (plus surcharge at a rate of five per cent) on the sale of bidis with immediate effect.