Currently 7 per cent tax on two-wheelers and three-wheelers for personal use and a 21 per cent tax on vehicles bought by companies and undertakings. Talking about taxing criteria, Mungantiwar said, "Instead of levying tax on the basis of whether the vehicle is registered as a personal vehicle or company or office vehicle, we now propose to levy Motor Vehicle Tax on the basis of the cubic capacity of the vehicles."
Based on the new budget, the government will decide on the percentage of tax to be levied a two-wheelers as per engine capacity. According to reports, taxes on two-wheelers with engine capacity up to 99cc have been increased to 8 per cent; two-wheelers with engine capacity from 100cc to 299cc will go up to 9 per cent. As for two-wheelers 300cc and above engine capacity will be levied with 10 per cent motor vehicle tax.
As the same time as for imported vehicles and those registered by companies and undertakings will attract double tax as compared to their respective previous rates. This means tax on these vehicles with 10% will be 20%. As for CKD vehicles they will attract a vehicle tax of 10%. Overall, the state is estimated to earn net additional revenue of Rs. 363 crore from the various tax hikes it has proposed for 2016-17.
