Ministers seek uniform road tax for vehicles across country

Uniform road tax structure and national permits for buses & taxis have been recommended by a group of ministers.

India should have a uniform road tax structure for vehicles across states, a group of ministers (GoM) has proposed.

The GoM is constituted by the Union road transport and highways ministry. In a meeting 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 transfer of vehicles. The GoM 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.

It has also 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 per cent, as against a 20 per cent 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.

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