Levy on actual, not ex-showroom, price

Chandigarh :
Thousands of vehicle owners in Haryana are set to pay lower one-time road tax.

With the state government set to charge road tax on the actual price and not ex-showroom price (which includes taxes such as CGST, SGST and cess) of the vehicles, substantial financial relief is in store for the vehicle buyers.

“The matter has been considered and a proposal for charging motor vehicle tax on actual price of the vehicles, excluding tax, has been approved by the government and will be finalised soon,” an undertaking filed by the Office of the Transport Commissioner before Chander Prakash, State Information Commissioner (SIC), said.

Prakash had earlier issued a show-cause notice to the Transport Department on an application filed by Punjab and Haryana High Court advocate Kanwar Yuvraj Singh. He had moved the SIC against the department’s failure to provide him information under the RTI Act.

The government decision to charge road tax on the actual price and not ex-showroom price would correct a major anomaly and provide relief to vehicle owners.

During his representations to the Transport Department, Kanwar had contended that under the predecessor Punjab Motor Vehicles Taxation Act, 1924, and the current Haryana Motor Vehicles Taxation Act, 2013, the road tax on motor vehicles could be charged on the actual cost of vehicles and not on the “ex-showroom” price.

The Punjab and Haryana High Court advocate had asserted that in neighbouring Punjab and Chandigarh, the authorities were charging road tax on the actual price of vehicles.