Government Proposes Uniform Tax On Cars Across The Country

The Ministry Of Road Transport and Highways has proposed a new uniform tax structure across the country for new cars. The move has been proposed to put an end to different pricing structures across various parts of the country and to stop people from registering their cars in lower taxed areas and using then in cities where taxes are relatively higher. The ministry has also proposed a uniform One Nation - One Permit structure for all commercial vehicles in the country in a bid to improve and ease the process of road transport for both vehicles carrying goods and passengers.

2/4 The GoM on Transport has recommended a uniform structure of road tax for vehicles across states. @nitin_gadkari @PMOIndia @transform_ind

— MORTHINDIA (@MORTHIndia) April 20, 2018

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The uniform taxation on new cars across the country will make cars, SUVs, and two-wheelers in certain parts of the country more expensive while making them cheaper to buy in some other areas. Cities like Mumbai and Bangalore should have a drop in prices due to an inherent higher tax rate while cars in cities like Delhi might get more expensive. That said, the uniform structure will really go a long way in improving the interstate transfer of used cars making the lengthy and rather a cumbersome process that exists today into a much more streamlined and less complicated one.

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The One Nation - One Permit proposal though will have farther fetching results. With an easier structure to transport goods across the country, the struggling road transport segment will see a most certain boost in morale, which could also lead to a reduction in prices of essential commodities like food, etc. The standardized permit will be an additional boost to the industry that already has seen a big improvement since GST came along and scrapped the state excise policies.