After ‘One Nation One Tax’ and ‘One Nation One Ration Card’ its time for ‘One Nation One Road Tax’. The central government is trying to bring state governments on board for its implementation.
The road tax paid during the registration of a vehicle is decided by a state’s own formula. This creates non-uniformity in road tax across state. While some states have high road tax others have quite low.
‘One Nation One Road Tax’ aims to curb this and wants to set a uniform road tax rate across the country. Since the road tax directly impacts the vehicle’s price buyers are expected to have a relief with the move.
State governments are however reluctant towards the idea. The reason being that the move would hit revenue collections of the state governments. A group of ministers on transport had earlier recommended a uniform road tax structure. They said that the tax shall be charged based on the invoice price of a vehicle.
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The uniform road tax has been a long-standing demand of the automobile industry. At a time when the sector is facing a massive slowdown, the demand again got pace. However, it would all depend on the Center’s ability to convince the states.
Inputs from Livemint