Northeast Desk, 14th September: The Sikkim government is set to revamp its vehicle tax framework in a bid to enhance state revenue and better align tax rates with current vehicular standards. The proposed changes, covering a broad spectrum of vehicles from two-wheelers to luxury tourist vehicles, will result in significant tax increases for many categories.
Under the new tax structure, two-wheelers will see the most substantial revisions. Vehicles with engine capacities up to 80cc will experience a dramatic tax hike from Rs 150 to Rs 500, marking a 233% increase. For two-wheelers with engines between 81cc and 170cc, the tax will rise from Rs 300 to Rs 750. High-capacity two-wheelers, with engines over 170cc, will now be taxed at Rs 1,500, up from Rs 600.
The tax adjustments extend to motor cars and jeeps as well. Vehicles with engine capacities up to 900cc will see their tax double from Rs 1,500 to Rs 3,000. Mid-range vehicles with capacities between 900cc and 2,000cc will face a new tax of Rs 5,000, increased from Rs 3,000. Premium vehicles with engine capacities above 2,000cc will be taxed at Rs 10,000, a significant increase from the current Rs 4,500.
Commercial vehicles are also impacted by the revisions. Maxi cabs, widely used in Sikkim’s hilly regions, will see their tax rates jump from Rs 3,000 to Rs 6,500. Similarly, luxury tourist vehicles, essential to Sikkim’s tourism industry, will now be taxed at Rs 10,000, up from Rs 4,000. Even emergency service vehicles like ambulances will face increased taxes, with rates ranging from Rs 3,000 to Rs 7,500 depending on engine capacity.
The Sikkim government justifies these increases as a necessary measure to address the rising maintenance costs of the state’s road infrastructure, exacerbated by the challenging terrain and growing number of vehicles. By aligning taxes with vehicle type and engine capacity, the government aims to ensure that users contribute fairly to the upkeep of public infrastructure. The new tax rates are also positioned as a move to bring Sikkim’s taxation in line with modern standards observed across India.
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