High-end cars and SUVs will get cheaper in Odisha with the cabinet on Saturday deciding to reduce the tax rates for such luxury vehicles.
A proposal in this regard got approval at the Cabinet meeting presided over by Chief Minister Naveen Patnaik. “The luxury cars costing Rs 40 lakh and above was taxed at 20 per cent. This would now cost 10 per cent after cabinet’s approval,” chief secretary A P Padhi told reporters.
“As per the decision of the Cabinet, car owners will have to pay 6 per cent one-time tax on vehicles costing up to Rs 5 lakh. Similarly, one-time tax of 8 per cent will be levied on cars costing Rs 5 lakh to Rs 10 lakh, 10 per cent tax on cars costing above Rs 10 lakh,” said chief secretary Aditya Prasad Padhi.
At present, the government is collecting 6 per cent, 8 per cent, 10 per cent, 12 per cent and 20 per cent on cars of costing upto Rs 5 lakh, Rs 5-10 lakh, Rs 10-20 lakh, Rs 20-40 lakh and above Rs 40 lakh respectively, Padhi said.
He said: “It has been seen that due to the enhancement of tax, the sale of high-end vehicles has gone down. The consumers are going to other states for registration of vehicles, thereby the ultimate objective of the government of augmenting motor vehicle revenue is being defeated.”