The Rajasthan Budget 2020 has proposed many changes in Motor Vehicles Tax. The Budget was presented on February 20th in the states assembly by Chief Minister Ashok Gehlot, who also holds the finance portfolio.
He did not propose any imposition of new taxes in the budget but there were certain changes in existing taxes. Such changes in taxes in relation to the tax department are:
- Reduction in rate of motor vehicle tax by Rs. 50 per seat per month for all three distance-based categories of sub-urban routes.
- Reduction in the rate of motor vehicle tax by Rs. 100 per month for contract carriage buses for seating capacity based two categories
- The ceiling of Rs. 100 per seat per month in the rate of MV tax for vehicles plying within two municipalities having distance less than 10 Km.
- Motor Vehicle Tax imposed on 23-32 seater vehicles operating as contract vehicles with industries will be determined Rs. 10000/- in place of Rs. 14000/-.
- Parity of One Time Tax of Construction Equipments Vehicle and vehicle fitted with equipment. Both categories will now pay tax at the rate of 10% of the cost of chassis and 8% for completely built vehicles.
- The rate of tax increased from 10% to 25% of the similar category of transport vehicles imposed on non-transport vehicles used for hire and reward purposes.
The proposed decreased rate of taxes is a welcoming move aimed at improving the consumption behavior of the consumers and is seen as a welcoming move.
