Wednesday, April 30, 2025

M’laya agrees to rationalize motor vehicle taxes

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New Delhi: Meghalaya has agreed to accept the Centre’s proposal which asks various states to levy a minimum 6 per cent of the sale price of the vehicle as a lifetime tax.

Participating at the 35th meeting of the Transport Development Council (TDC) held here on Wednesday, Meghalaya Transport Minister HDR Lyngdoh while agreeing with the Centre’s proposal to rationalise motor vehicle taxes, has sought Union government’s help in improving the state’s road infrastructure.

“Meghalaya is now facing a huge problem in the movement of heavy commercial vehicles,” Lyngdoh said at the meeting.

The meeting, which was chaired by Union Minister for Road Transport & Highways Oscar Farnandes, resolved that a life-time tax would be levied with sales price, preferably, as the base for tax purposes, with a floor rate of 6 per cent for two-wheelers, cars, light motor vehicles (LMVs), taxis and goods vehicles upto 7.5 tonnes gross vehicle weight (GVW).

The meeting deliberated on the recommendations of the Official Committee set up for rationalization of motor vehicle taxes to levy lifetime tax on vehicles.

Lyngdoh said that Meghalaya does not levy multiple taxes such as entry tax, mechanical tax or service tax on goods or passenger vehicles.

The meeting resolved that flexibility will be available to the states to charge higher rate of tax in general or on specific model of vehicles above the floor rate of tax as resolved above.

The meeting resolved that on Tourist Buses moving interstate, for Grant of National Permit for Contract Carriage, a committee will be constituted to give a report within two months. The National Permit may be based on Annual Permit Fee on seat basis with provisions to prevent misuse of the permits.

The meeting resolved that a scheme to provide for collection of one time premium for a longer period, for Third Party Insurance of Motor Vehicles be worked out. This premium should be capitalized and funded by the financial institutions.

Lyngdoh pointed out that traffic congestion has become a problem in the hill state due to increased number of vehicles. “But the state needs to replace several old and weak bridges, most of which are made of wood,” he said seeking the Centre’s help in this regard.

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