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Wednesday, September 22, 2021

AMC standing committee meeting: Plan to hike tax for vehicles above Rs 15 lakh approved

The standing committee also cleared the proposal of 100 per cent vehicle tax exemption for electric four-wheelers.

By: Express News Service | Ahmedabad |
Updated: September 3, 2021 12:49:52 am
The increase in vehicle tax is calculated on the basic price of a vehicle and this hike would earn the civic body an additional annual income of Rs 10 crore. (File)

The standing committee of the Ahmedabad Municipal Corporation (AMC) on Thursday cleared a proposal to increase tax by 0.5 to 2 per cent for vehicles that cost above Rs 15 lakh. At present, vehicles above Rs 15 lakh are taxed at flat 3 per cent.

The standing committee also cleared the proposal of 100 per cent vehicle tax exemption for electric four-wheelers.

The proposal of hike in vehicle tax aimed at increasing revenue for the corporation was passed by the AMC revenue committee earlier this week and tabled before the standing committee on Thursday. It now awaits the final approval of the General Board.

To be implemented from October 1, 2021, the vehicle tax for four-wheelers that cost between Rs 15 and Rs 25 lakh has been increased from 3 to 3.5 per cent. For vehicles that cost Rs 25 to Rs 50 lakh, the one-time vehicle tax has been proposed to increase from 3 to 4 per cent, while for vehicles above Rs 50 lakh, it will increase from 3 to 5 per cent.

The increase in vehicle tax is calculated on the basic price of a vehicle and this hike would earn the civic body an additional annual income of Rs 10 crore.

The proposal passed by the revenue committee for exemption to electric vehicles is under National Clean Air Programme to check pollution and encourage the use of electric vehicles.

The AMC had announced 100 per cent vehicle tax exemption for electric two-wheelers in its 2021-’22 annual budget but it was not applicable to electric three-wheelers and four-wheelers.

As a part of its preparation for a possible third wave of Covid, the standing committee has approved work worth Rs 11.80 crore for the setting up and maintenance of oxygen generation plants with 500 and 250 LPM (litre per minute) capacity.

To ease the process of repair and restoration of notified heritage private buildings in Ahmedabad, the AMC has proposed a single-window rapid processing system. As per the proposal passed, no fee would be charged to pass plans, thus saving the costs and paper work for owners of notified heritage buildings.

The map and documentation prepared by the Ahmedabad World Heritage Trust would be shared with the owners of an estimated 2,200 heritage buildings that can be used in the plan passing process.

For financial assistance to owners of notified heritage buildings for repairing and restoration, the AMC has a policy of Tradable Development Rights (TDR) too.

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