GoM moots uniform road tax across States

A group of ministers (GoM) on transport has recommended a uniform structure of road tax for vehicles across States.

National permit

At a meeting held in Guwahati on Thursday, the GoM also mooted a national bus and taxi permit on the lines of goods transport.

“The GoM observed that a uniform tax structure will put a check on people registering their vehicles in low tax States and running them in other States. This would also bring necessary relief to genuine cases requiring transfer of vehicles,” the Ministry of Road Transport and Highways said in a statement. The GoM formed by the ministry is headed by Transport Minister of Rajasthan Yunus Khan, and comprises transport ministers of various States.

Thursday’s meeting was to deliberate on a proposals for “One Nation-One Tax” and “One Nation-One Permit.”

“Public transport in the country is growing annually at a rate of just about 2%, as against a 20% annual growth in private transport. A national permit will give the much needed fillip to public transport and help reduce road congestion and its attendant problems,” the statement added.

The GoM also mulled ways to promote alternate fuel for vehicles and suggested liberalising permits for electric vehicles, and raising the tax on diesel vehicles by 2% while lowering the tax on electric vehicles

In order to promote alternate fuel for vehicles, the GoM had proposed liberalisation of permit system for electric vehicles. In addition, it has recommended raising the tax on diesel vehicles by 2% while lowering the tax on electric vehicles.