HT Digital
GUWAHATI, Aug 22: The Assam Cabinet has approved a pivotal revision to the state’s motor vehicle taxation framework, with the objective of establishing a more logical and scientifically grounded taxation system, Chief Minister Himanta Biswa Sarma announced on Wednesday.
The sanctioned revision, referred to as the ‘Assam Motor Vehicle Taxation (Amendment) Bill, 2024’, aims to modernize the ‘Assam Motor Vehicle Taxation Act, 1936’, which is set to be introduced in the Assam Legislative Assembly for further deliberation and approval.
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Meanwhile, a significant feature of the amendment is the reconfiguration of the current tax brackets for both four-wheeled and two-wheeled vehicles.
The proposed tax brackets are intended to correspond with vehicle price categories, thereby enhancing the fairness of the taxation process.
For four-wheelers, the tax rates will vary from 4% for vehicles valued at up to ₹3 lakhs to 14% for those valued at ₹20 lakhs and above.
Two-wheelers will experience tax rates beginning at 6% for those priced up to ₹70,000, escalating to 10% for vehicles exceeding ₹3 lakhs.
Furthermore, the Bill introduces a new framework for the One Time Tax (OTT) applicable to small commercial vehicles, which includes e-carts, e-rickshaws, and three-wheelers.
E-carts and e-rickshaws will also be taxed at a rate of 2%, while three-wheeler passenger vehicles will incur a tax of 4%, and three-wheeler goods vehicles will be taxed at 6%.
Additionally, the amendment proposes to incorporate specific categories of three-wheelers and four-wheelers, particularly those subject to the One Time Tax regime, into the newly revised tax structure at the point of their initial registration within the state.
