This article is written by Karishma Ramchiary, a 4th-year student of B.A. LL.B. in Lloyd Law College, Greater Noida. This article provides the details on the rules and regulations related to road tax in India.

1.Introduction

Transportation as a means of communication is unavoidable; therefore, constructing roads and maintaining them is necessary. This is the reasoning for which road tax is charged from every vehicle which is used or kept for use on roads. Every Country or State charges road tax.

This taxation is also essential because the government in order to ensure the safety and security for all travellers and helps in connecting them to every town or cities conveniently. In india, the road network is the second largest road network, with a total length of around 4,320,000 kilometers which consists of 1000 km -Expressways, 79,243 km National Highways, 1,31,899 km State Highways and other major district and rural roads.

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1.1 Road tax in India

As per the constitutional provisions of the country, Schedule 7th List II  Entry 56 which states, “Taxes on goods and passengers carried by road or on inland waterways”. And Entry 57 which states , “Taxes on vehicles, whether mechanically propelled or not, suitable for use on roads, including tramcars subject to the provisions of entry 35 of List III.” 

List III entry 35 states, “Mechanically propelled vehicles including the principles on which taxes on such vehicles are to be levied.” Thus, It is evident that road tax is regulated by both State Government and Central Government. 

1.1.2 Road tax for vehicles

All vehicles either four wheelers, two wheelers or any other types of vehicles used for private and commercial purposes are levied with road tax. Road taxes are paid at the time of registration of the vehicle. Also, different states have different methods to pay road tax; it is either paid annually or all at once. Road taxes are to be paid at the Regional Transport Office (RTO).

While the initial payment of road tax of a vehicle is done by the dealer of the automobile or the showroom; however after the expiration of the initial payment it is to be done by the individual. The payment of road tax at the RTO requires certain documents such as the  registration papers and insurance paper of the vehicle, address proof, and purchase invoice. It may be done by Cash or Demand Draft.

The need to transfer a vehicle’s registration from one state to another may arise when the owner himself transfers to a new state or when he wants to sell the vehicle in another state. In the first circumstance, the owner has to cancel the original registration of the vehicle and apply for Grant of No Objection Certificate (NOC) to the RTO of the original state.

For the second circumstance, i.e, to sell it in the new state, he shall not only deregister and apply for NOC but also apply for notice of transfer of ownership of the vehicle. The further process is to submit the NOC to the RTO in the new state; pay the road tax applicable to new state and get a new vehicle registration number from the RTO.

1.1.3 State wise road tax in India

§  Road tax in Delhi

Road tax in Delhi is regulated by the Delhi Motor Vehicles Taxation Act, 1962, Amended in the year 2004. 

Levy of taxes:

Section 3 of the Act provides for payment of one time tax at the time of registration on all vehicles used or kept in use in Delhi. Any vehicle that is more than 10 years old from the date of first registration do not attract any tax. (Section 3 (b)(iii) proviso ). The vehicles to be taxed are particularly described in Schedule 1 of the Act. 

Payment of Taxes (Section 4 of the Act): 

The owner of the vehicle shall declare the payment to be paid by him as per required under Schedule 1 of the Act. The tax may be paid – i) for a year or ii) for one or more quarter  for such vehicles specified in part A of Schedule 1 and one time tax for such vehicle described in part B of Schedule 1.

Penalty for non-payment of taxes in time (Section 11 of the Act):

In case of default in making payment of tax,the tax authority will direct penalty of  a sum not exceeding the annual tax payable in respect to the concerned vehicle with the in addition to the amount of arrears. 

The payment of tax for 2 wheels and 4 wheelers (Schedule 1 Part B) are-

Description of Motor Vehicle	Amount (One time Tax)
Two wheelers costing upto Rs. 25,000/-	2% of the cost price
Two wheelers costing above Rs. 25,000/- and upto Rs. 40,000/	4% of the cost price
Two wheelers costing above Rs. 40,000/- and upto Rs. 60,000	6% of the cost price
Two wheelers costing above Rs. 60,000/-	8% of the cost price
Non Transport category three wheelers	4% of the cost price
Four wheeled and more than four wheeled motor vehicles costing upto Rs. 6 lakhs	4% of the cost price
Four wheeled and more than four wheeled vehicles costing above Rs. 6 lakhs and upto Rs. 10 lakhs.	7% of the cost price
Four wheeled and more than four wheeled vehicles costing above Rs. 10 lakhs	10% of the cost price

 

The way in which the ‘cost price’ is calculated –

1. In the case of motor vehicles manufactured in India the basic manufacturing cost and excise duty plus sales tax without allowing any cash or trade discount; and 
2. In the case of imported motor vehicles, the price shown in the Bill of Entry and shall be inclusive of customs duty, sales tax or any other levy, as may be applicable. 

For other details of rate of tax refer to 

1. Schedule 1 of the Delhi Motor Vehicles Taxation Act, 1962, Amended in the year 2004. 

Maharashtra Road tax

The Maharashtra Road tax is regulated by Maharashtra Motor Vehicles, 1958. The Act has been amended several times, the latest being on 2017 which was called as ‘Maharashtra Motor Vehicles Tax(Amendment) Act, 2017.’ This Act has 25 sections and 5 schedules.

The objective of the Act is to consolidate and amend the law relating to the taxation of motor vehicles in the State of Bombay (Maharashtra) and to provide for certain other matters.

The important provisions of the Act in relation to road tax in Maharashtra are discussed below:

Levy of Taxes: 

Section 3 of the Act provides for tax to be levied on all vehicles used or kept for use in the state. The rate of tax to be paid is fixed by the state government by notification in the Official Gazette but it shall not exceed the maximum rates specified in the First Schedule of the Act.

One time tax for the lifetime may be levied for the lifetime on all motorcycles and tricycles however, one time tax thrice the rate shall be levied and collected on motorcycle or tri cycle (Section 3 (1C)) used or kept for use in the State by a person not being an individual, a local authority, a public trust, a university or an educational institutions as specified in Part I and Part II of the second schedule of the Act. The maximum limit of this tax shall be rupees 20 lakhs.

Also, motor cars and omni bus shall also be taxed once for a lifetime (Section 3( 1D))and tax twice the rate shall be levied as specified in Part I and Part II of the third schedule provided further the maximum limit being 20 lakhs. One time tax shall also be levied for all goods carriages (Section 3(1E)) and all motor vehicles (including Tricycle) plying for hire or reward fitted with fare meters and used or kept for use in the State of the carriage of not more than six passengers (Section 3 (1F)). 

Section 3A of the Act provides for environmental tax to be levied on all vehicles as specified in 5th Schedule of the Act.

Payment of Taxes: 

Section 4 of the Act provides for payment of tax that is levied in advance by the registered owner or those who are in possession or control of the motor vehicle. The tax may be paid at Annual rate, Quarterly rate or More than one quarter, at multiples of the quarterly rate or For any period less than a quarter expiring on the last day of the quarter,-

(a) at the rate of one-twelfth of the annual rate of tax plus 20 percent, thereof where the period does not exceed one calendar month;

(b) at the rate of two-twelfth of the annual rate of tax plus 15 percent, thereof, where the period exceeds one calendar month but does not exceed two calendar months; and

(c) at the quarterly rate, where the period exceeds two calendar months.

In case of tax payable for one time as specified in Section 3 (1C) (1D) (1E) and (1F), shall be paid at the time of registration-

ii. Within one month from the date of expiry of the period for which the tax is paid 

iii. At the time of Registration mark is assigned to the vehicle in the State of Maharashtra.

Penalty for non-payment of the tax (Section 16):

In case of non-payment of the tax and having its possession and control shall be punished on conviction for incomplete and untrue declaration-

i)  with fine equal to the tax payable for the vehicle for two quarters;

ii) in case of previous offence under this section, penalty of fine not be less than a sum equal to the annual tax payable of the vehicle and it may be extended to a sum equal to twice the annual tax payable in respect of such vehicle, and

iii) fine shall not be less than three hundred rupees which may extended to a sum equal to the one time tax payable in case of motorcycle, tricycle, motor car or omni bus. This fine shall not be less than five hundred rupees and may extended to a sum equal to twice the one time tax payable of the vehicle if previously convicted of an offence under this section.

The 5 Schedule of the Act 

The maximum rates of the vehicles are listed in Schedule 1 of the Act.

The Second Schedule of the Act consist details in regard to the rates of those motor vehicles (specifically motor cycle and tri cycle) which requires one time tax at the time of registration (Part I); payment of one time tax in case the vehicle is already registered (Part II) and details to refund (Part III).

The Third Schedule of the Act also contains details in regard to the rate of those motor vehicles (specifically motor cars and omni buses) which requires one time tax at the time of registration (Part I); payment of one time tax in case the vehicle is already registered (Part II) and and details to refund (Part III).

The Fourth Schedule details out the amount to be paid to the local bodies by the State Government for levying or collecting tolls of motor vehicles and trailers. 

The Fifth Schedule list the rate of environment tax to be levied on Motor Vehicles in rupees.

Road tax in West Bengal

The Road Tax in West Bengal is under Section 39 of the Motor Vehicle Act, 1988 which provides for registration to be done for every vehicle driven in a public place. The road tax for the State of West Bengal is regulated both by the central government and the State Government.

We can find a brief legislative history of the promulgation of the statute relating to tax on Motor Vehicles in West Bengal in Soumitra Banerjee And Ors. vs State Of W.B. & Ors.(2004) which challenged the West Bengal Additional Tax and One-time Tax on Motor Vehicles Tax (Amendment) Act, 2003, the West Bengal Motor Vehicles Tax (Amendment) Act, 2003 and the West Bengal Additional Tax and One-time Tax on Motor Vehicles (Second Amendment) Act, 2003. 

The West Bengal Motor Vehicle Tax Act, 1979 (‘the Act’) provides the rules and regulations relating to imposition and levy of tax on motor vehicles in the State of West Bengal. 

Levy of Taxes: 

Article 3 of the Act states that all types of vehicles shall be levied tax that are used or kept for use on the public roads of the State and the State is entitled for the purpose of safeguarding the revenues of the State and to prevent evasion of tax, to enact a provision raising a presumption the vehicle is used or kept for use in the State without any further proof.

Payment of Taxes:

Taxes shall be paid for the year and in advance by the person liable to pay the tax within such period as may be determined by the Taxing Officer. In case of transport vehicle, taxes may be paid quarterly in advance, but a rebate of five per cent, shall be allowed if the tax is paid for the whole year in advance. Provided  that the Taxing Officer may allow payment of tax in respect of both transport and non-transport vehicle for any period, not exceeding six months at a time to avoid overcrowding of taxpayer during any particular period in a year. (Section 4 of the Act).

Penalty of non-payment of taxes (Section 11 of the Act):

In case of non-payment of taxes, in time, the person liability shall be paid penalty-

1. one-quarter of the tax in case the payment is made within 30 days of the expiration of the time of payment of the tax.
2. One-half of the tax in case the payment is made after 30 days but within 60 days of the expiration of the time of payment of the tax
3. Equal to the amount of tax in case the payment is made after 60 days of the expiration of the time of payment of the tax

The description of Motor Vehicles and Annual Rate of Tax is as below:

Motorcycle (2Wheeler) i.Up to 100 cubic centimeters engine capacity  ii.Above 100 and upto 200 cubic centimeters engine capacity  iii.Above 200 cubic centimeters engine capacity	Annual Rate of Tax Rs. 80 Rs. 100 Rs. 150
Motorcycle combination- i.Up to 100 cubic centimeters engine capacity  ii.Above 100 and upto 200 cubic centimeters engine capacity  iii.Above 200 cubic centimeters engine capacity  iv.engine capacity above 250 cc	Rs.100 Rs.150 Rs. 200 Rs. 400
Motor Cars(4 wheeler) owned by individuals or societies registered under the West Bengal Societies Registration Act, 1961 i.engine capacity up to 900 cc  ii.engine capacity above 900 cc up to 1490 cc  iii.engine capacity above 1490 cc	Rs. 600 Rs. 800 Rs. 1600
Motor Car owned by others i.engine capacity above 900 cc ii.engine capacity above 900 cc up to 1490 cc  iii.engine capacity above 1490 cc	Rs.1000 Rs.1200 Rs.2500
Omnibus registered as Non-transport Vehicle i.with seating capacity up to 8  ii.with seating capacity beyond 8	Rs.1400 Rs. 1400 for 8 seats plus Rs. 150 for each additional seat beyond 8.
Omnibus registered as private service vehicle- i.with seating capacity up to 8  ii.with seating capacity beyond 8	Rs. 1800  Rs. 1800 for 8 seats plus Rs. 150 for every additional seat beyond 8.

For other details with regard to rate of tax refer to 

1. The Schedule of West Bengal Motor Vehicle Tax Act, 1979 
2. Motor Vehicles, Taxes and Fees.

Road tax in Madhya Pradesh

The Road Tax in Madhya Pradesh is regulated under Section 39 of the Motor Vehicle Act, 1988 which provides for registration to be done for every vehicle driven in a public place. The road tax for the State of Madhya Pradesh is regulated both by the central government and the State Government.

The State Government regulates the road tax which is one of the most important sources of revenue by the Madhya Pradesh Karadhan Abdhiniyam, 1991. The latest Amendment done on this act was in 2006. This Act was brought with the objective to rationalize and simplify the motor vehicle tax as it unified ‘motor vehicle tax’ and ‘additional tax’ under MP Motor Vehicle Taxation Act, 1947 and ‘goods tax’ under MP Motor Vehicles (Taxation of Goods) Act.1962.

Levy of taxes:

Article 3 of the Act provides for tax to be levied every vehicle used or kept for use in the State at the rate specified in Schedule 1 and one time tax as specified in Schedule 2.

Payment of Taxes (Section 5):

The tax levied under Article 3 may be paid in advance at the choice of the owner – i) quarterly, ii) half yearly or iv) annually.

Penalty for non-payment of tax (Section 13): 

In case of non-payment of tax or default in payment of tax, a penalty at the rate of 4% of the unpaid amount of tax of each month. However, this shall not exceed twice the unpaid amount of tax.

In case of lifetime tax that is not paid, the owner shall be liable of penalty at the rate of one-tenth of the lifetime tax of each year or part in addition with the payment of tax due. This shall not exceed the lifetime tax specified in Schedule 2.

Description of motor vehicles and Rates 

 

Class of motor vehicles	Rale of Quarterly tax for Motor Vehicles
Motorcycle i)does not exceed 70 kilograms ii)exceeds 70 kilograms whether used for drawing a trailer or not	Rs. 18 Rs.28
Motor Car i)does not exceed 800 kgs. 64.00 ii)exceeds 800 kgs. but does not exceed 1600 kgs. iii)exceeds 1600 kgs. but does not exceed 2400 kgs. iv)exceeds 2400 kgs. but does not exceed 3200 kgs. v)exceeds 3200 kgs.	Rs. 64 Rs.94 Rs.112 Rs.132 Rs.150
Omni bus (used) as Transport vehicle/passenger transport vehicle i)for Ordinary’ Bus ii)for Express Bus iii)for Air Conditioned Deluxe Bus iv)for sleeper bus/ coach	Rs. 160 per seat per month Rs. 180 per seat per month Rs. 230 per seat per month Rs. 230 per seat per month

 

 In cases of lifetime tax payment

 

Motor vehicles	Lifetime tax
Motorcycles with or without attachment  i) does not exceed 70 kgs ii)exceeds 70 kgs	5% of the cost of the vehicle 5% of the cost of the vehicle
Motor Cars i)does not exceed 800 kgs. ii)exceeds 800 kgs but does not exceed 1600 kgs. iii)exceeds 1600 kgs. but does not exceed 2400 kgs. iv)exceeds 2400 kgs. but does not exceed 3200 kgs. v)exceeds 3200 kgs.	5% of the cost of the vehicle 5% of the cost of the vehicle 5% of the cost of the vehicle 5% of the cost of the vehicle 5% of the cost of the vehicle
Omni Bus registered for private use having seating capacity exceeding 6 and up to 12 (excluding driver)	7% of the cost of the vehicle

 

The Cost of the vehicle is determined by the dealer and to calculate the Life Time Tax on the basis of cost of the vehicles, the owner of the vehicle shall be required to produce sale receipt issued by the dealer at the time of registration.

For more details on the rate of tax on vehicles, refer to 

1. The Schedules of the Act.

Road tax in Haryana

Along with the Central Motor Vehicle Act, 1988 (Amended in 2019), the road tax in Haryana is regulated with Haryana Motor Vehicles Act, 2016. Several Other rules that regulate motor vehicles in Haryana are Central Motor Vehicles Rules 1989,Haryana Motor Vehicle Rules 1993, Carriage by Road Act, 2007, Carriage by Road Rules 2011 and Haryana Motor Vehicles Taxation Rules, 2011.

The Haryana Motor Vehicles Act, 2016 provides for-

Levy of Taxes (Section 3)

The State Government shall levy and collect taxes on all vehicles used or kept for use in the State of Haryana, at the rate and penalty that may be specified by the State Government by notification, from time to time however this rate shall not exceed the maximum as specified in Schedule of the Act.

Payment of Taxes (Section 4):

The tax shall be paid to the licensing officer within a period of 30 days from keeping the motor vehicle in the State. In case, the payment is for a particular period , the licensing officer shall grant a licence valid throughout the State as prescribed. Also, In case of a one time tax, the payment would be recorded in the certificate of registration and no license shall be granted. 

Penalty for non-payment of taxes in time (Section 10):

When the payment of tax is unpaid in the specified time, the owner of the vehicle shall pay penalty as may be notified under section 3 of the Act. This penalty shall not exceed twice the amount of tax due in case of one time payment and in other basis, the penalty shall not exceed five times the amount of tax due for a year. 

When the owner of the vehicle fails to pay the tax due or the penalty to be paid, then he would be liable to pay simple interest on the amount of tax due and penalty, at the rate of one and a half per month from the last date of submission of the tax due or from the day when the penalty was imposed by the license officer or in case of no specified period in the order, then from the 15th day from the date of the order.

In cases of non-compliance of the provisions of this Act or any order specified under this Act and if no penalty is provided in the Act for such compliance, then penalty which shall not exceed five thousand rupees will be imposed. 

The maximum rate specified in the Schedule for Non-Transport Vehicle, Transport Vehicle, Private Vehicle and Educational Institute Vehicle is described below. The rate of other classes of motor vehicles are also described in the Schedule of the Act.

 

Non-Transport Vehicle- i) motor-cycle, motor car and invalid carriage ii) excavator, Loader, Backhoe, Compactor Roller, Road Roller, etc. and any other non-transport vehicle not covered under any category Purchased as chassis Purchased with complete body	20% of the cost of motor vehicle on one time basis 30% of the cost of chassis on one time basis 20% of the cost of motor vehicle on one time basis
Transport Vehicle i) Contract Carriage including All India Tourist Vehicles Motor Vehicles with seating capacity upto 12+1 Motor Vehicle with seating capacity above 12+1	Rs. 20,00,000 on one time basis or 2,00,000 per year Rs.20,00,000 per year
ii) Private Vehicle  Motor Vehicle seating capacity upto 12+1 Motor Vehicle with seating capacity above 12+1	Rs. 20,00,000 on one time basis or Rs. 20,00,000 per year 20,00,000 per year
iii) Educational Institute Vehicle	Rs. 10,00,000 on one time basis or Rs. 1,00,000 per year

1.2  Calculation of road tax

As the road tax in India differs from each state, it is calculated on various factors which include age of the vehicle, seating capacity and weight of the vehicle. Other factors that may be taken into calculation are engine capacity, cost price of the vehicle etc. the factors taken into consideration vary from state to state.

1.2.1 Age of vehicle

Road tax to be paid depends on the age of the vehicle. The  Road Tax would differ for new and old vehicles. For example in the State of Karnataka in case of two wheelers: (Part A1 of Schedule of The Karnataka Motor Vehicles Taxation Act, 1957)

 

Class of vehicles	Motor cycles which cost does not exceeds Rs. 50,000/	Motorcycles cost of which exceeds Rs.50,000/- but does not exceed Rs. 1,00,000/-	Motorcycles cost which exceeds Rs. 1,00,000/	Motorcycles run on Electricity
At the time of Registration of New Vehicles	10% of the cost of the Vehicle	12% of the cost of the Vehicle	18% of the cost of the Vehicle	4 % of the cost of the vehicle
If the vehicle is already registered and its age from the month of Registration is:	Percentage of the Life Time Tax levied	Percentage of the Life Time Tax levied	Percentage of the Life Time Tax levied	Percentage of the Life Time Tax levied
Not more than 2 years	93%	93%	93%	93%
More than 2 Years but not more than 3 Years	87%	87%	87%	87%
More than 3 Years but not more than 4 Years	81%	81%	81%	81%
More than 4 Years but not more than 5 Years	75%	75%	75%	75%
More than 5 Years but not more than 6 Years	69%	69%	69%	69%
More than 6 Years but not more than	64%	64%	64%	64%

1.2.2 Seating capacity

The Road tax levied can also be determined by the seating capacity of the vehicle. For example: In the state of Bihar, Transport vehicles excluding goods carriages and motor cabs are charged additional motor vehicle tax on the basis of seating capacity (Schedule II of Bihar Motor Vehicles Taxation Act, 1994);

 

Transport vehicles excluding goods carriages and motor cabs	Annual rate of Additional Motor Vehicles Tax.
With seating capacity more than 6 but not exceeding 15 persons exclusive of the driver.	Rs. 240.00 for every seat
With seating capacity more than 15 persons but not exceeding 32 persons exclusive of driver and conductor.	Rs. 320.00 per seat
With seating capacity exceeding 32 persons exclusive of driver and conductor.	Rs. 416.00 per seat.

1.2.3  Weight of vehicle

The weight of the vehicle is also one of the basis to calculate road tax. We may again cite the example of Bihar Motor Vehicles Taxation Act, 1994 where trailers are charged tax on the basis of its weight.(Schedule II Part C (6)).

 

Trailers –	Annual Rate of Tax of Motor Vehicles
Upto 500 kgs. registered laden weight.	Rs. 253.00
Exceeding 500 kgs. but not exceeding 2,000 kgs. of registered laden weight.	Rs. 253.00 + Rs. 29.00 for every additional 250 kgs. or part thereof above 500 kgs.
Exceeding 2,000 kgs. but not exceeding 3,000 kgs. of registered laden weight.	Rs. 432.00 + Rs. 40,00 for every additional 250 kgs. or part thereof above 2,000 kgs.
Exceeding 4,000 kgs. but not exceeding 8,000 kgs. of registered laden weight.	Rs. 760.00 + Rs. 49.50 for every additional 250 kgs. or part thereof above 4,000 kgs.
Exceeding 8,000 kgs. registered laden weight.	Rs. 1,568.00 + Rs. 120.00 for every additional 250 kgs. or part thereof above 8,000 kgs.

1.3  Rate of road tax

As road tax is a state level tax, the rate of road tax is imposed and determined by each state individually in their own State. Therefore, the rate of road tax vary in all states. Road tax is levied on all vehicles by the State Government, Central Government and Local Authorities.

1.3.1 Pay road tax online

Payment of road tax online can be done on the official website of the Ministry of Road Transport and Highways in case of several states (Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir,Jharkhand, Punjab, Rajasthan, Tripura, Uttar Pradesh & Uttarakhand ). For other states tax may be paid online on the website of the Transport Department of that State. Payment of Road Tax through online websites requires the vehicle registration number and the Chassis number of the vehicle and other general information of the vehicle (Vehicle Permit Type, Seating Capacity (Excluding Driver) etc. ) .The payment is to be done with the available online mode of payment (through internet banking, credit card or debit card etc.).

1.3.2 Refund of road tax paid

The owner of a vehicle may claim for road tax refund in certain circumstances when he decides to – i) transfer and move his vehicle to another state; ii) discard the vehicle which is less than 15 years. To claim refund the registration of the vehicle shall be cancelled at the RTO where the vehicle was registered. In the cancellation process, the owner shall produce the documents related to the vehicle. The refund process is slow and at times it might get stuck at some level. To know about the refund’s progress or reason for its slowdown, one may also file an RTI.

1.3.3 GST on road tax

After the introduction of GST, the State Government has increased the road tax. The report by Economic Times, ‘Higher road tax in 9 states pushes up cost of cars’ (September 17, 2019) states that nine states including Punjab, Kerala, Jammu and Kashmir and Bihar have increased road taxes and this has resulted into rise of road cost of passenger vehicle.

In The report, Maruti Suzuki chairman RC Bhargava says that the simple reduction in the GST will not help on passenger vehicles will help reduce costs and spur demand though GST is a major element that increases the cost of the car. But even if the Central government reduces the GST and the State government adds more to road tax, it would make no difference in the cost of  vehicle.

Conclusion

In the modern world, the use of motor vehicles is on the rise. India became 4 largest auto industry in the world as the sales increased to 9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. In 2018, it was the 7th largest manufacturer of commercial taxes. To own a car or a vehicle has become more of a status symbol in urban India. Taking into consideration these new developments, the State Government should consider bringing reforms and progress in the rate of road tax.

Road tax levied should be reasonable for the owner of the vehicle and not tax that is imposed haphazardly by the government.

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