Buying a two-wheeler in Maharashtra just got dearer as the governing body has hiked basic motor vehicle tax by 3% on locally produced motorcycles and scooters. The imported two-wheelers also saw a massive hike with new basic motor vehicle tax of up to 20%. The earlier rate of motor vehicle tax for domestic and imported bikes stands at 7%. The new rates are effective from Tuesday, June 7, 2016.
Here is the updated tax structure:
Indian Bikes
- Bikes with 99cc engine: 8%
- 100-299cc: 9%
- 300 and above: 10%
Imported Bikes
- Bikes with 99cc engine: 16%
- 100-299cc: 18%
- 300 and above: 20%
With new tax rates in effect, a person buying a performance motorcycle worth Rs 20 lakh, for example, will now have to pay Rs 4 lakh (20%) instead of Rs 1.40 lakh (7%) according to the earlier rate.
In an interview to Times of India, Deputy RTO Subhash Pedamkar said, “We have updated our software and will be charging the revised rates of two-wheeler road tax from Tuesday morning. Most of the bikes are of high value these days (Rs 1.5-2 lakh), and therefore, buyers will feel the pinch. For imported bikes, the tax slabs are being doubled. The new tax structure will be in the range of 16-20% for imported two-wheelers. For bikes registered with us till Monday evening, we will give buyers the benefit of the old (present) tax structure.”
Source: Times of India
God… I was just preparing for a bike purchase to upgrade from my Uni. Anyway, it is good for state, good for public transport, good for overall environment but bad for me.