You are using an older browser version. Please use a supported version for the best MSN experience.

GST impact: Maharashtra govt hikes one-time registration tax for vehicles

LiveMint logoLiveMint 04-07-2017 PTI

Mumbai: The Maharashtra government has increased the one-time registration tax on private two- and four-wheelers by 2%. The hike was approved by the Maharashtra cabinet on Monday to compensate for the loss of revenue due to the abolition of octroi and local body tax following the implementation of the goods and services tax (GST), an official from the transport department said on Monday.

The government has, however, capped the tax amount for high-end imported cars at Rs20 lakh as against 20% of the total car cost that was being charged earlier. “There were instances of imported vehicles (bought by people in Maharashtra) being registered in other states where taxes are lower. This was causing revenue loss to the state exchequer,” the official explained.

“To avoid this, the government has decided to cap the tax on high-end imported cars at a maximum of Rs20 lakh, irrespective of the car price,” he said. The official said that earlier, the registration tax on two- and three-wheelers was 8-10%, which has now been hiked to 10-12%.

The cars running on petrol were earlier levied 9-11% tax, which has been raised to 11-13%. For the cars running on diesel, the registration tax was around 11-13%, which has been increased to 13-15%. For CNG or LPG cars, the tax has been increased to 7-9%, from the earlier 5-7%, the official added.

More From LiveMint

image beaconimage beaconimage beacon