Odisha government on Wednesday hiked one-time motor vehicle registration tax.
The State Cabinet decided to amend the Odisha Motor Vehicles Taxation Act, 1975 which will see a rise in the taxes levied on various classes of vehicles.
As per the new rates, all private vehicles, including two-wheelers and cars, will be charged at a flat rate of six percent of their cost less than Rs 5 lakh.
Vehicles costing Rs 5-10 lakh will be charged 8 percent of their cost while vehicles costing between Rs 10-20 lakh will be charged 10 percent, and vehicles costing between Rs 20-40 lakh will be charged 12 percent. Cars priced beyond Rs 40 lakh would be charged at 20 per cent.
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Presently, one-time tax is being collected for personal vehicle at five percent of the cost of the vehicle.
“It is necessary to effect amendment of the OMV Act for mobilisation of additional resources for the state on the basis of the suggestions of an Expert Committee headed by Sanjib Chandra Hota. The state will generate an additional Rs 66 crore after amendment of the OMV Act,” said Chief Secretary G C Pati.
The one time tax has also been enhanced in respect of goods carriages having gross weight not exceeding 3,000 kg from five per cent to six per cent. For tractors, trailers and battery run vehicles, an one time tax of three per cent would be imposed.
The state government has proposed a green tax on vehicles that have crossed 15 years of age. The tax is aimed at discouraging ageing vehicles as they are found to be causing much collateral damage to life and property.
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