September 1, 2021 12:40:51 am
The revenue committee of the Ahmedabad Municipal Corporation (AMC) on Tuesday passed a proposal to increase vehicle tax by 0.5 to 2 per cent for vehicles that cost above Rs 15 lakh from a flat 3 per cent levied at present.
The proposal aimed at increasing the revenue for the corporation will be tabled in the standing committee meeting scheduled on September 2.
The vehicle tax for four-wheelers that cost between Rs 15 and Rs 25 lakh is proposed to be increased from 3 per cent to 3.5 per cent, while for vehicles costing from Rs 25 to 50 lakh, it is 4 per cent from the existing 3 per cent and for vehicles that cost above Rs 50 lakh, the tax is proposed to be increased from 3 per cent to 5 per cent.
Revenue committee chairman Jainik Vakil told The Indian Express, “The increase in vehicle tax for super rich citizens is aimed at pollution control as well increasing AMC’s revenue.” Sources revealed that this hike would result in an additional annual income of Rs 10 crore for the civic body.
“High priced SUV-type vehicles consume more fuel. Using such vehicles increases the levels of air pollution. Keeping this in mind, the changes have been proposed in vehicle tax from October 1,2021…,” the agenda for AMC’s standing committee meeting scheduled September 2 states.
The increase in vehicle tax is calculated on the basic price of a vehicle. The tax slab vehicle above basic price of Rs 15 lakh would apply to a vehicle that costs around Rs 20 lakh.
The proposal, under the National Clean Air Programme, also aims to encourage the use of electric vehicles. The standing committee will decide on 100 per cent vehicle tax exemption for all types of electric vehicles from October 1, 2021 to March 31, 2022. The AMC has already announced 100 per cent vehicle tax exemption for electric two-wheelers in its 2021-22 annual budget.
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