The government of India led by Ministry of Road Transport and Highways has proposed a road tax structure that is expected to make the current road tax system more organised and uniform across the country. If implemented, this will promote the use of public transport, ease the transfer of vehicles within the states across India and promote the use of electric vehicles. The Group of Ministers (GoM) constituted by the Ministry of Road Transport & Highways has recommended a uniform structure of road tax for vehicles across states. In a meeting held in Guwahati, 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 the transfer of vehicles.
This will also see the introduction of a new National Permit for both goods and passenger vehicles. After GST, it’s now One Nation-One Road Tax that the government is pushing for and will improve the overall movement of vehicles across the state borders.
The GoM, headed by Shri Yunus Khan, Minister for Transport, Rajasthan and comprising State Transport Ministers, seeks to find solutions to the various problems plaguing the road transport sector in the country so as to improve road safety and facilitate ease of transport. The meeting held in Guwahati was headed by Assam Chief Minister Sarbananda Sonowal and discussed One Nation- One Tax and One Nation- One Permit proposal.
Further, it was recommended a national bus and taxi permit on lines of such permit for goods transport. Public transport in the country is growing annually at a rate of just about 2 percent, as against a 20 percent 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 introduction of the new National Permit for diesel-powered taxis, buses and other commercial vehicles’ prices going up by 2 percent. However, electric vehicles will attract a lower or no tax at all recommended GoM.
The government has not decided the roll-out date of this new road taxation system and the actual amount of road tax to obtain a National Permit will be announced at a later date.
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