GoM on transport moots uniform road tax for entire country

A group of ministers (GoM) on transport has recommended a uniform road tax structure for vehicles across states, in a meeting held on Thursday. It has also mooted a national bus and taxi permit.

“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,” according to a statement from the Ministry of Road Transport and Highways.

Headed by Yunus Khan

The GoM, formed by the ministry, is headed by Yunus Khan, minister of transport of Rajasthan, and comprises transport ministers of various states.

Thursday’s meeting was held in Guwahati to deliberate on 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 over 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.