Small Car Owners in This Indian State Can Enjoy Relief on Lifetime Road Tax – Find Out More

The West Bengal government introduced the West Bengal Motor Vehicles Tax (Amendment) Act 2024, which aims to provide relief to small car owners in the state. Under the amended act, small car owners will have to pay road tax at lower rates, and the amended act offers vehicle owners rebates on advance tax payments across different categories.

According to the amended act, the lifetime road tax on private cars and vehicles that can carry up to 14 people and are not registered as transport vehicles, for which lifetime tax was not paid at the time of first registration in West Bengal, can now be paid at the rate of 7.5 per cent of the value of the vehicle. This is beneficial compared to the 5.5 per cent one-time road tax for five years from the pre-amendment tax regime.

Previously, under the pre-amendment tax structure, car owners paid an 11 per cent road tax if they retained the vehicle for 10 years. However, after this amendment, the lifetime tax rate has been lowered, allowing owners to pay 7.5 per cent of the value of the vehicle and drive it on roads in the state for a longer period.

The West Bengal government hopes that this reduction in the rate of lifetime tax for vehicles will boost revenue generation in the transport segment in the state and bring more transparency and convenience for vehicle owners. Additionally, the government believes that this move will reduce the tendency of tax evasion by vehicle owners.

Besides small cars, the newly introduced West Bengal Motor Vehicles Tax (Amendment) Act 2024 also brought relief for transport vehicles in different categories.

Overall, this amendment aims to ease the financial burden on small car owners and generate more revenue for the state government from the transport sector. With the reduced tax rates, small car owners in West Bengal will be able to drive on the state’s roads with greater ease and affordability.