In a major decision to improve tax compliance and reduce harassment of public as well as chances of corruption, Haryana Cabinet on Monday decided to rationalise the road tax on the vehicles used for personal and special purposes by reducing the number of slabs and simplifying taxation structure in the State.
From now onwards, in case of vehicles up to the value of Rs0.75 lakh for personal purpose, road tax at the rate of four per cent of the value of the vehicle would be charged, whereas for two wheeler above the value of Rs0.75 lakh and upto Rs2 lakh, tax at the rate of six per cent of the value of the vehicle would be charged, said a Government’s spokesperson.
Similarly, in case of two wheeler above the value of Rs2 lakh, tax at the rate of eight per cent of the value of the vehicle would be charged. The spokesperson said that an estimated additional revenue to the tune of Rs120 crore per year is expected on account of road tax from the vehicle used for personal purposes only. The tax from the vehicles designed and used for special purposes will further add more revenue to the State exchequer.
In case of vehicles other than two wheeler upto the value of Rs6 lakh, five per cent of the value of the vehicle would be charged as tax, whereas for vehicles above the value of Rs6 lakh and upto Rs20 lakh, eight per cent of the value of the vehicle would be charged as road tax. For vehicles above the value of Rs20 lakh, tax at the rate of 10 per cent of the value of the vehicle would be charged, said he.