Tax on imported and company vehicles cut
People intending to buy imported cars could end up saving a few lakh rupees. The government, which had recently hiked the Motor Vehicle Tax (MVT), has decided to put a cap of 20% on the tax on imported and company-owned vehicles.mumbai Updated: May 17, 2012 01:33 IST
People intending to buy imported cars could end up saving a few lakh rupees. The government, which had recently hiked the Motor Vehicle Tax (MVT), has decided to put a cap of 20% on the tax on imported and company-owned vehicles.
The decision to make an amendment to the Bombay Motor Vehicle Tax Act, 1958, was taken during the state cabinet meeting on Wednesday.
Earlier this month, the state government had increased the tax on motor vehicles, effective from May 1. After the hike, owners of imported and company-owned vehicles were paying up to 26% tax for diesel and 22% tax for petrol vehicles.
“The government had announced that this tax will be reduced and it was done accordingly,” said chief minister Prithviraj Chavan during a press briefing after the meeting in Mantralaya on Wednesday.
The decision was taken following the reduction of sale of imported cars in the state, since the MVT here was among highest in the country.
There was also pressure of manufactures of motor vehicles to reduce taxes in these two categories.
The decision will directly impact prospective buyers of high-end cars, since a large number of manufacturers import cars instead of making them in the country
Additionally, about 30% of the vehicles registered in Mumbai are in the name of firms and rest in the name of individuals.
The cabinet has also proposed to club vehicles running on LPG with the CNG category.