The auto industry has been in doldrums recently with sales declining constantly since June 2019 as it has been grappling with regulatory and policy uncertainties, growing levels of pollution and a slowdown in the economy
The government is proposing to increase the registration fees for new vehicles across all types, according to a CNBC-TV18 report.
If the hike comes to pass, two-wheeler owners, who have been paying Rs 50 so far, will now have to pay Rs 1,000 for registering their new motorcycles. Heavy goods vehicle will now incur Rs 20,000 instead of the current Rs 1,500.
The report also stated that owners of Light motor vehicles would have shell out Rs 10,000 to register their vehicle, instead of Rs 1,000 and three-wheelers will attract Rs 5,000 as registration fees from an earlier charge of Rs 300.
The auto industry has been in the doldrums recently with sales declining constantly since June 2019 as it has been grappling with regulatory and policy uncertainties, growing levels of pollution and a slowdown in the economy
The proposed tax hike further confirms the government's intent to promote electric vehicles (EVs). In the first Budget of Modi 2.0, the Finance Minister proposed to exempt EVs from registration charges along with several benefits to electric car buyers and tax rebates to EV makers. Also, efforts have been made to encourage scrapping of old vehicles.
The auto industry had already been calling for GST rate cuts to keep prices in check as any increase in costs could hamper the festive season.
