Bikes, Cars, SUVs set to be expensive in this Indian State: Many other States likely to follow - The Financial Express

Bikes, Cars, SUVs set to be expensive in this Indian State: Many other States likely to follow

Prices of Cars, bikes, scooters and commercial vehicles are all set to go up with various state's transport revenue falling short.

By: | Published: August 9, 2018 2:14 PM
Representational Image (Image Source: Propstory.com)

Cars, SUVs, bikes, scooters and commercial vehicles are all set to be expensive in Bihar with the state cabinet giving the required approval to the transport department’s proposal to impose taxes on the base price or the ex-showroom price of vehicles as per its segment. The Bihar government will now charge taxes as per the vehicles price and its brand as against its engine displacement capacity.

Bihar’s transport department will charge taxes ranging from 8-12% on the vehicle’s ex-showroom price once and will be valid for 15 years. This will further include the price of the vehicle with CGST, SGST and the Cess on premium vehicles. As per the Principal Secretary, Arun Kumar Singh, this new taxation policy was done to counter the shortfall in revenue post the implementation of Goods and Services Tax (GST) despite an increase in vehicle sales in the state.

The lower 8% tax will be charged for vehicles with a price lower than Rs 1 lakh, On vehicles (bikes, cars and LCVs) ranging from Rs 1 lakh-Rs 8 lakh will be taxed at 9%. Rs 8-15 lakh at 10% and high-end cars and SUVs above Rs 15 lakh will be taxable at 12%. Taxes on buses and passenger carriers will now be based on their seating capacity and power of the vehicle. The simple annual tax will be charged on regular buses whereas separate taxes on semi-deluxe and deluxe buses. The annual tax ranges from Rs 550 to Rs 860. Vehicles with the weight of fewer than 1,000 kgs will be charged Rs 8,000 every year and Rs 6500 for vehicle vehicles with a gross weight of Rs 6500 with a 2% hike every year.

With the shortfall in transport revenues in many other states of India, it is expected that every Regional Transport Department is likely to hike taxes on all vehicles soon.

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