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Come July 11, vehicle registration in Chandigarh to cost more
The Chandigarh administration on Friday notified a hike ranging from 4% to 6% for both four-wheelers and two-wheelers purchased from the city, making vehicle registration in the city more expensive
Accepting UT transport department’s proposal to hike road tax for conventional fuel-run vehicles, the Chandigarh administration on Friday notified a hike ranging from 4% to 6% for both four-wheelers and two-wheelers purchased from the city, making vehicle registration in the city more expensive.
Users of electric vehicles, however, are exempted from this tax.
The notification issued on Friday will be implemented from July 11, the UT administration said on Friday.
In case of registration of two-wheelers bought in the city, UT has hiked the tax from 3% to 8% for vehicles costing up to ₹1 lakh, and from 4% to 10% for those over ₹1 lakh.
Buying the two-wheeler from outside UT will lead to a 10% road tax if it’s worth up to ₹1 lakh and 12% if its cost is more than ₹1 lakh.
For four-wheelers bought from the city, UT has hiked the road tax from 6% to 10% if the vehicle costs up to ₹15 lakh, and from 8% to 12% if its value is more than ₹15 lakh.
If purchased outside Chandigarh, 12% tax will be charged on four-wheelers costing up to ₹15 lakh and it will increase to 14% on vehicles worth more than ₹15 lakh.
The UT administration has clarified that the one-time road tax will be charged on the actual price of the vehicle as given by the manufacturer, excluding GST and other taxes, and not on the discounted price.
Before the hike, Chandigarh had the lowest tax rates for non-electric vehicles compared to Punjab and Haryana. Due to this, people from neighbouring cities would get their vehicles registered in UT after doing house rent-lease agreements.
In Punjab, the road tax for four-wheelers is 9% for vehicles priced up to ₹15 lakh and 11% for those costing above ₹15 lakh. In Haryana, four-wheelers costing ₹10 lakh to ₹20 lakh are subject to 8% tax, while those priced from ₹6 lakh to ₹10 lakh invite 6% tax.
For two-wheelers, the road tax in Punjab is 7% for two-wheelers priced below ₹1 lakh and 9% for vehicles costing above ₹1 lakh. Similarly in Haryana, 4% tax is charged for two-wheelers costing up to ₹75,000, 6% for vehicles priced between ₹76,000 and ₹2 lakh, and 8% if priced above ₹2 lakh.
Non-transport vehicles transferred from other states to also invite more tax
The UT transport department has also increased the road tax rates for registration of non-transport vehicles transferred from other states.
For two-wheelers, the department will levy 10% tax on Insured Declared Value (IDV) for vehicle costing less than ₹1 lakh and 12% on IDV for vehicles valued more than ₹1 lakh.
Earlier, it was 3% on IDV of vehicles costing less than ₹1 lakh, 4% on vehicles costing ₹1 lakh to ₹4 lakh and 5% on vehicles worth more than ₹4 lakh.
For four-wheelers, the department will charge 12% on IDV for vehicles costing up to ₹15 lakh and 14% on IDV of vehicles costing more than ₹15 lakh. Earlier, it was 6% on IDV in case of vehicles costing less than ₹20 lakh and 8% in case they were worth more than ₹20 lakh.
In case of third party insurance, valuation report of the vehicle should be issued by the surveyors of the insurance company.
