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Sunday, September 18, 2011

Govt notifies substantial roll back in vehicle registration fee and annual taxes

GANGTOK, 14 Sept: The hike in vehicle registration fees and annual road taxes notified earlier this year by the State Government [through the Motor Vehicles Department] creating quite a stir among the vehicle owners and sellers here in the State, have been substantially rolled back, by margins ranging from 50% to up to 75%. The registration fee had earlier been scaled up to more than 8% leading vehicle owners and dealers to protest. Many had even started purchasing new vehicles from Siliguri and getting them registered there because of the much cheaper option presented by West Bengal. The Government had announced that it would reconsider the hike, and earlier last week, notified a substantial roll-back.
Following up on the Sikkim Motor Vehicles Taxation (Amendment) Act, 2011, Act No.16 of 2011, the Cabinet on 03 September cleared a considerably reduced tax regime which came into effect on 08 September. The rate for registering a non-commercial two wheeler is now 1 percent of the cost of the vehicle, while vehicles costing less than Rs. 4 lakh will have to pay 2 percent of the cost as against the 5 percent to which the fee was hiked earlier. Vehicles costing between Rs. 4 lakh and Rs.10 lakh will have to shell out 3 percent of the cost of the vehicle against 6 percent earlier. Vehicles costing more than Rs.10 lakh will have to pay 4 percent of the cost against 8 percent as required earlier.
For light motor vehicles of Government and Public Sector Undertaking, the registration fee has been reduced to 3 percent for vehicles costing more than Rs.10 lakh against the earlier 5 percent. The tax for vehicles costing below Rs. 4 lakh remains nil and between 4 lakh to 10 lakh at 1 percent.
The rate fixed for all kinds of taxi vehicles is now 1 percent of the cost of the vehicle against the previous 2 percent. Similarly, the tax for registering educational institute buses and private service vehicles has also been brought down to 1 percent from 2 percent.
The rates for annual tax of vehicles have also been reduced. Now motorcycles with an engine capacity upto 80cc will have to pay the department Rs. 150; similarly, two wheelers with an engine capacity from 81cc to 170cc will have to dole out Rs. 300; 171cc to 250cc motorcycles will have to pay Rs. 450 and two wheelers having engine capacity above 250cc will have to pay an annual tax of Rs. 600. [Rs. 50 to 100 has been reduced on different segments as compared to the previous rate]
Private motor cars with an engine capacity up to 900cc and not for plying for hire will have to pay an annual tax of Rs. 1,500 against the earlier prescribed Rs. 2,000 per annum while vehicles having an engine capacity of 901-1490cc will have to pay Rs. 1800 against Rs. 2,500. Vehicles having engine capacities from 1,491cc to 2,000cc will have to pay Rs. 3,000 against the previous rate of Rs. 3,500 while vehicles with an engine capacity between 2001cc and above will have to pay Rs. 4,500.
However, the annual tax for vehicles ferrying paying passengers and plying for hire, the rate of taxation for a maxi-cab, each seat based on seating capacity noted in the registration certificate, provided that the maxi cab will have a stage carriage permit duly issued by the concerned Transport Authority, stays at Rs. 250 annually and Rs. 200 for other vehicles, each seat based on the seating capacity noted in the registration. The notification has not revised the rates for taxis [which stands as above] all goods transport vehicles, meter taxis, contract carriages including those owned by motor training schools, private service vehicles like Omni buses, mini cabs, tractors, trailers and luxury tourist vehicles.

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