Chandigarh hikes road tax by 4 to 6 pc, new rates come into force from July 11

A notification in this regard was issued on Friday evening and the new rates will come into force from July 11. For the registration of a new two-wheeler, the department has increased the tax from 3% to 8% on vehicles costing up to Rs 1 lakh if the vehicle is purchased within the city. This tax slab will increase to 10% if the vehicle is purchased outside the city.

Similarly, the notification says that the tax has been increased to 10% on two-wheelers costing more than Rs 1 lakh if the vehicle is purchased within the city and 12% if the vehicle is purchased outside Chandigarh. Earlier, it was 4% on vehicle costing Rs 1 lakh to Rs 4 lakh, 5% on two-wheelers costing more than Rs 4 lakh. As many as 2,000 four-wheelers and an equal number of two-wheelers are registered in the city almost every month.

Four-wheelers

The tax has been increased from 6% to 10% on four-wheelers costing up to Rs 15 lakh if the vehicle is purchased within the city and 12% if the vehicle is purchased from outside the city.

Also, it was said that the department will charge 12% tax on four-wheelers costing more than Rs 15 lakh if the vehicle is purchased within the city and 14% if the vehicle is purchased from outside Chandigarh.

The one-time MV Tax will be charged on the actual price of the vehicle as given by the manufacture, excluding GST and other taxes and not on the discounted price.

In case of delay in paying tax

As per the notification, where the tax due in respect of any motor vehicle has not been paid by the owner or the person having the possession or control thereof, within the specified time, then in addition to payment of the tax due, he will also be liable to pay penalty at 0.5% of the tax due to each day of delay. The actual amount of penalty will not exceed the amount of tax due.

Rates in neighbouring states

The rates in neighbouring states differ because of which people from neighbouring areas used to get their vehicles registered in Chandigarh. In Punjab, the road tax for four-wheelers is 9% for vehicles priced up to Rs 15 lakh and 11% for those costing above Rs 15 lakh. In Haryana, four-wheelers priced at Rs 10 lakh to Rs 20 lakh are subject to 8% tax while vehicles priced at Rs 6 lakh to Rs 10 lakh invite 6% tax.

Tax on two-wheelers in Punjab, Haryana

While in Haryana, 4% tax is charged for two-wheelers costing up to Rs 75,000, 6% for vehicles priced between Rs 0.76 lakh and Rs 2 lakh, and 8% for vehicles priced above Rs 2 lakh, in Punjab, the road tax is 7% for two-wheelers priced below Rs 1 lakh and 9% for vehicles costing above Rs 1 lakh.
The Chandigarh administration has also increased the tax rates for the registration of non-transport vehicles transferred from other states.

According to the notification issued by the Chandigarh administration, on two-wheelers, the department will levy 10% on insured declared value (IDV) for vehicle costing less than Rs 1 lakh and 12% on IDV for vehicles which cost more than Rs 1 lakh.

Prior to this, it was 3% on IDV of vehicles costing less than Rs 1 lakh, 4% on vehicles costing Rs 1 lakh and up to Rs 4 lakh and 5% on vehicles costing more than Rs 4 lakh.

For four-wheelers, the department will charge 12% on IDV for vehicles costing up to Rs 15 lakh and 14% on IDV on vehicles costing more than Rs 15 lakh. Prior to this, it was 6% on IDV of vehicles costing up to Rs 20 lakh while 8% on IDV of vehicles costing more than Rs 20 lakh.