Guwahati, 20th July: On Thursday, reports confirmed that the Governor of Assam issued an ordinance to amend the Assam Motor Vehicle Taxation Act, 1936, resulting in increased taxes for both two-wheelers and four-wheelers in the state.
The newly introduced ordinance, named the Assam Motor Vehicle Taxation (Amendment) Ordinance, 2023, will be applicable to the same extent as the principal act and will take immediate effect.
Under the revised taxation proposal, four-wheelers will face varying tax rates based on their value. 4.5 percent tax is lavied to cars priced at Rs. 3 lakhs, vehicles valued between Rs. 3 lakh and Rs. 10 lakh at 7 percent, those costing between Rs. 10 lakh and Rs. 20 lakh at 10 percent, and cars priced above Rs. 20 lakh at 14 percent of the vehicle’s cost.
Similarly, two-wheelers will also experience adjusted tax rates. Vehicles valued up to Rs. 1 lakh will be taxed at 6 percent, those priced between Rs. 1 lakh and Rs. 3 lakh at 8 percent, and two-wheelers above Rs. 3 lakh at 9 percent.
Furthermore, the revised ordinance includes increased taxes for mechanical cranes mounted on motor vehicles, vehicles used for the carriage of goods, and tractors.
The amendment aims to generate revenue for the state while also impacting vehicle owners with varying tax rates depending on their vehicle’s value, contributing to the overall transportation sector in Assam.