Finance Minister Thomas Isaac says the promotion of electric vehicles is the government's policy. The first five years of electric autorickshaws will be completely exempted from tax. The first five-year tax rebate on newly purchased petrol and diesel autos has been lifted. Instead, the first five years of such vehicles will be taxed at Rs 2,500.
Taxes on motorcycles up to Rs 2 lakh will be reduced by 1% and for cars and private vehicles costing up to Rs 15 lakh, 2% will be taxed at 5%. The one-time tax on new vehicles and three-wheelers will be reduced to five percent for vehicles owned by dealers and for demo purposes only.
For vehicles owned by the dealer and used for demo purposes only, one-fifteenth of the tax will be levied on the registration of new vehicles. Registration of such vehicles is applicable for a one-time tax of fifteen years. he quarterly tax on multi-axle vehicles is much higher than the tax on neighbouring states. Therefore, the tax on non-tipper and heavy-duty vehicles is reduced by 20 percent.
When selling a vehicle worth over Rs 10 lakh, the seller has to pay 1% tax and pay it to the Income Tax department. This can then be adjusted for the tax paid by the vehicle owner. This amount does not include the purchase price. Motorcycles costing up to Rs 2 lakh each have a 2% increase and motor vehicles costing Rs 15 lakh are getting a 2% increase in tax. It is expected to generate additional revenue of Rupees 2 crores.