215 Shares 6848 Views

New cars in Maharashtra to cost more despite GST bonanza

Jul 08, 2017
215 6849

Your new dream wheels will now cost more in Maharashtra despite automakers slashing prices after the Goods and Services Tax (GST) kicked in from July 1.

To make up for the revenue loss due to the removal of the octroi and local body tax on the registration of the new vehicles after the introduction of GST, cash strapped Maharashtra government has hiked the one time registration tax by 2%.

Automobiles, apart from hybrid cars and super-sports bikes, have become cheaper since July 1 as most automakers chose to pass on the benefit of lower taxes to their customers, reducing the ex-showroom prices of cars across the country.

After the hike in Maharashtra, two wheelers will attract registration tax ranging between 10% to 20% of their price and four wheelers from 11% to 22%. This would help the government generate Rs 750 crore a year.

Local bodies in the state used to collect the tax on vehicle registration in the form of LBT and Octroi in Mumbai. The collection of this tax was about Rs 300 crore in Mumbai and Rs 700 crore in rest of the state. About 17.40 lakh two wheelers and 3.20 lakh four wheelers are registered in the state every year.

“Since we have to pay the compensation of the revenue loss to the local bodies with 8% hike every year, the state had to increase the one time registration tax to compensate the loss due to scrapping of the local taxes,” said an official from the finance department.

The government is also exploring other revenue options after the Rs 34022 crore farm loan waiver, last month.

State government officials say that though the Centre will compensate for revenue loss under GST, but local bodies who lose out on LBT and octroi will not be part of it.

You may be interested

Modi’s way to the New India of Vivekananda and Deendayal
11 shares673 views

Modi’s way to the New India of Vivekananda and Deendayal

Siddheshwar Shukla - Sep 12, 2017

ASHISH SOOD At a time the country is celebrating 125th anniversary of the famous Chicago speech of Swami Vivekananda and birth centenary of…

Schools be made liable for the promises they make
0 shares313 views

Schools be made liable for the promises they make

Siddheshwar Shukla - Sep 09, 2017

Siddheshwar Shukla The parents sacrifice their personal life to earn for the hefty fee the branded schools charge for care and grooming of…

Gauri Lankesh murder case enters in political wonderland
0 shares228 views

Gauri Lankesh murder case enters in political wonderland

Siddheshwar Shukla - Sep 08, 2017

Siddheshwar Shukla The efforts were on from both the sides – left and right; to make it a political issue but now we…

Most from this category