- Ahmedabad mirror
- 09/01/2021 6:00 am
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Expensive cars are taxed more heavily
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Tax times for Amdavadis
state government makes final decision; Expensive cars use more fuel, cause more pollution: AMC
Ahmedabad Municipal Corporation decided to increase road tax on vehicles that cost more than Rs 15 lakh. The one-off vehicle tax to be paid has been increased from 0.5% to up to 2%. The decision would place an additional charge of Rs 10 crore on the people. However, it will be implemented after approval by the state government.
According to the chairman of AMC’s Revenue Committee, expensive cars like SUVs use more fuel and increase pollution, so they need to be charged more. On the other hand, electric vehicles have been 100% exempt from road tax to improve air quality while reducing pollution. In its 2021-22 budget, the AMC decided to exempt vehicles from this lifetime tax. Ahmedabad has been included in the central government’s national air pollution control program.
People who can afford luxury cars can afford to pay more taxes, AMC panel chief Vakil said. There is no tax increase on vehicles used by common people, such as two-wheelers, auto rickshaws, loader rickshaws, Tempo, mini-trucks, etc. The vehicle tax is levied on the base price of vehicles and is a lifelong tax.
Various taxes are levied such as RTO tax, CGST, citizen tax and insurance, etc. with the base price of a vehicle ranging from Rs 15 lakh to Rs 20 lakh. The proposal will be submitted to the Standing Committee for approval and later submitted to the state government for final approval. AM