UP govt increases vehicle registration tax again

In just over 12 months, the UP government has hiked the one-time tax (OTT) on registration of new vehicles again.

In just over 12 months, the UP government has hiked the one-time tax (OTT) on registration of new vehicles again.

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While two-wheelers and low-cost cars will see a substantial hike, luxury vehicles and SUVs will see only a marginal increase. While the previous hike came into effect in Oct, 2009, the current change was announced through a notification on Monday.

As per the new rates, all private vehicles, including two-wheelers and cars, will be charged at a flat rate of 7% of their cost. Previously, two-wheeler paid 5% of the cost while four-wheelers were charged at 5% to 7%.

In the past, OTT on a two-wheeler worth R48,000 amounted to R2,400 at the rate of 5%. Now, the owner will pay R3,360, i.e. R960 more. Similarly, for a car worth R3 lakh, R15,000 was charged as tax at 5%. Now, it will cost R6,000 more at 7%.

Regional transport officer (RTO) Lalji Chaudhary said the move will bring in more revenue for the department.

However, consumers have protested the sharp hike.

"The government is increasing taxes but has failed to provide residents with better roads and infrastructure. We don't mind paying taxes but where are the facilities?" said Rahul Sharma, a senior executive with a multinational BPO in Noida.