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Maharashtra Suggests to Increase Motor Vehicles Tax
August 08, 2017
The Maharashtra Transport Ministry has proposed to raise the Motor Vehicles Tax by amending the same in the state Motor Vehicles Tax Act. The bill that’s tabled in the assembly seeks to raise the rates of all tax slabs currently allocated to different vehicles.
According to the proposal, now that Value Added Tax (VAT) and octroi are eliminated from the taxation system and replaced by the Goods and Services Tax, the loss of revenue should be compensated by raising the motor vehicles taxes.
Currently, the tax structure followed for the motor vehicles is as follows:
- 8-10% for motor cycles and tri-cycles
- 9-11% for petrol vehicles
- 11-13% for diesel vehicles
- 5-7% for CNG and LPG vehicles