GST Impact: Road Tax Increased In Maharashtra

The Maharashtra government has increased road tax in the state by 2%. Road tax is a one time payment that is mandatory when buying a brand new car and has gone up for both petrol and diesel vehicles. For petrol vehicles, the tax which was originally 9-11 percent of car value has now been increased from 11-13 per cent depending on the size of the car. The road tax on diesel, which was originally levied at between 11-13 per cent is now up to 13-15 per cent instead similarly depending on the size of the car. The road tax hike is due to the recent GST implementation where the state of Maharashtra is expected to incur considerable losses amounting over Rs 700 crore due to the scrapping of the Excise taxes.