The Haryana government on Monday decided to rationalise the rates of tax on the vehicles used for personal or special purposes by reducing the number of slabs and simplifying taxation structure.
The decision, aiming at improving tax compliance, creating reliable database, reducing workload in offices and harassment of public as well as chances of corruption, was taken in a meeting of the state cabinet held under the chairmanship of chief minister ML Khattar.
In case of vehicles for personal purpose, two-wheelers up to the value of Rs 75,000, tax at the rate of 4% of the value of the vehicle would be charged, whereas two-wheelers above the value of Rs 75,000 and upto Rs 2 lakh, tax at the rate of 6% of the value of the vehicle would be charged.
In case of two-wheelers above the value of Rs 2 lakh, 8% tax of the value of the vehicle would be charged. Aside car drawn by the vehicles mentioned above and invalid carriage would be exempted from the tax.
In case of vehicles other than two-wheelers up to the value of Rs 6 lakh, tax at the rate of 5% of the value of the vehicle would be charged as tax, whereas vehicles above the value of Rs 6 lakh and up to Rs 20 lakh, tax at the rate of 8% of the value of the vehicle would be charged.
Similarly, in case of vehicles above the value of Rs 20 lakh, tax at the rate of 10 % of the value of the vehicle would be charged.
For vehicles for special purposes, 6% of the value of vehicle would be charged as tax in case of excavator, loader, backhoe, compactor roller, motor grader, mobile crane, dozer, fork lift truck, selfloading concrete mixture, vehicle fitted with rig, generator, compressor, tow truck, break-down van, recovery vehicle, tower wagon, tree-trimming vehicle, mobile workshop, mobile canteen, cash van, mail carrier, fire tender, fire fighting vehicle, mobile clinic, X-ray van, library van, ambulance and animal ambulance.
Likewise, 1% of the value of vehicle would be charged in case of fire tender, fire fighting vehicle, mobile clinic, X-ray van, library van, ambulance and animal ambulance owned by boards, corporations, public sector undertakings of state or central government or by the Red Cross Society or any such charitable body registered as such under the Income Tax Act, charging nil or nominal fee for use of such vehicles.
In case of vehicles used for personal purpose, including camper van and caravans, but not covered under category 1 or 2, 12% of the value of vehicle would be charged as tax.
On the basis of above rates, an estimated additional revenue to the tune of Rs 120 crore per year is expected on account of road tax from the vehicle used for personal purposes only.
The tax from the vehicles designed and used for special purposes will further add more revenue to the state exchequer.
TRIBUNAL TO HEAR EMPLOYEES’ GRIEVANCES
The cabinet also decided to set up a state administrative tribunal (SAT) so as to provide quicker redressal of employees’ grievances regarding service matters. Khattar said that in view of the increasing number of court cases, particularly service matters of employees, it was decided to set up the SAT, which would provide quicker redressal of employees’ grievances or service matters.
HPSC TO HAVE TWO MORE MEMBERS
The cabinet also decided to increase the strength of Haryana Public Service Commission (HPSC) by amending the Haryana Public Service Commission (conditions of service) Regulations 1972.
As per the amendment, now the number of members of HPSC have been increased from existing six to eight, besides the chairman.
TEACHERS’ POSTS UNDER HSSC
The cabinet also gave ex-post facto approval for bringing the posts of post graduate teachers (PGT)/trained graduate teachers (TGT) and other teachers under the purview of Haryana Staff Selection Commission (HSSC) by making amendment in para 6(a) of government notification dated January 28,1970.
VAT EXEMPTED ON BIO-FERTILISERS
The cabinet also decided to exempt the bio-fertilisers from levy of VAT in the state to bring it at par with chemical fertilisers. At present, the bio-fertilisers are taxable at the rate of 5% whereas chemical fertilisers are tax-free in the state. The decision has been taken to encourage the use of bio-fertilisers by farmers and to protect the environment and soil health. It also decided to reduce VAT rate from 12.5% to 5% on LED lights which are energysaving and environment-friendly.
Besides, it was also decided to reduce the VAT rate of pipe fittings from 12.5% to 5% to bring consistency in the tax rates of pipes and pipe fittings.
The cabinet decided to reduce the VAT rate from 12.5% to 5% on pre-engineered steel buildings and steel components, including puff panels thereof.
It also decided to amend the Rule 7 of the Central Sales Tax Haryana Rules, 1957 to enable the online issuance of ‘C’ forms.