City residents will now have to shell out nearly 4-6 per cent more for the registration of new vehicles with the UT Transport Department revising the motor vehicle (MV) or road tax. The new rates will come into effect from July 11.
For two-wheelers, the department has increased the tax from the existing 3 per cent to 8 per cent on vehicles costing up to Rs 1 lakh if purchased within the city. The tax will increase to 10 per cent if the vehicle is purchased outside the city.
The department will charge 12 per cent road tax on four-wheelers costing more than Rs 15 lakh, if purchased within the city and 14 per cent if bought from outside.
A lump sum one-time MV tax will be charged on the actual price of the vehicle as given by the manufacture, excluding GST and other taxes, and not on the discounted price. As per the notification, where the tax due in respect of any motor vehicle has not been paid by the owner or the person having the possession or control thereof within the specified time, the person shall also be liable to pay penalty at the rate of 0.5 per cent of the tax due per day. The actual amount of penalty shall not exceed the amount of tax due, it said.
At present, Chandigarh has the lowest tax rates for non-electric vehicles when compared to Punjab and Haryana. Nearly, 2,000 four-wheelers and an equal number of two-wheelers are registered in the city every month.
An official of the Transport Department said the tax had been increased after nearly a decade. Due to the lower tax rates in Chandigarh, people from neighbouring cities had been getting their vehicles registered in the UT by preparing a house lease agreement.
In Punjab, the road tax for four-wheelers is 9 per cent for vehicles priced up to Rs 15 lakh and 11 per cent for those costing above Rs 15 lakh. In Haryana, four-wheelers priced from Rs 10 lakh to Rs 20 lakh are subject to 8 per cent tax, while vehicles priced from Rs 6 lakh to Rs 10 lakh attract 6 per cent tax. In Haryana, 4 per cent tax is charged for two-wheelers costing up to Rs 75,000, 6 per cent for vehicles priced between Rs 0.76 lakh and Rs 2 lakh, and 8 per cent for those priced above Rs 2 lakh.
Higher rate on vehicle transfer too
Tax for registration of non-transport vehicles transferred from other states hiked too. For two-wheelers, 10% of insured declared value (IDV) for vehicle costing less than Rs 1 lakh; 12% of IDV for ones costing more than Rs 1 lakh. For four-wheelers, 12% of IDV for vehicles costing up to Rs 15 lakh and 14% on IDV for ones costing more than Rs 15 lakh.