Northeast Desk, 3rd October: In a significant move to alleviate the financial burden on vehicle owners, the Sikkim Motor Vehicle Department has issued a revised notification that lowers motor vehicle tax rates across various categories. This decision follows public outcry and objections from transport stakeholders regarding a previous tax hike, prompting the government to review and reduce the rates by 10-20 percent in several categories. The revised rates are set to take effect on October 1, 2024, offering much-needed relief to both private and commercial vehicle owners throughout the state.
The new notification, released by the Government of Sikkim’s Motor Vehicle Division under the Transport Department, aims to make vehicle ownership more affordable. It covers a range of vehicles, including motorcycles, motor cars, omnibuses, and goods transport vehicles. The reduction in tax rates is authorized under the Sikkim Motor Vehicles Taxation Act, 1982.
For motorcycles, the revised tax rates provide substantial reductions, with annual fees decreasing from ₹500 for smaller engine capacities (80cc and above) to ₹3,500 for larger motorcycles exceeding 501cc. Motor cars have also seen lower rates, with vehicles under 900cc now taxed at ₹2,400 annually, while those with engine capacities over 2,000cc will be taxed at ₹8,000 per year.
Omni-buses registered as non-transport vehicles with seating capacities beyond 10 will now incur a tax of ₹10,000, plus an additional ₹500 for each extra seat. Transport vehicles and goods carriers will benefit from tax reductions based on their gross vehicle weight (GVW), covering vehicles ranging from under 500 kg to those exceeding 15,000 kg.
In addition to the tax reductions, the revised notification introduces several incentives to promote vehicle ownership. Vehicle owners who choose to make a one-time tax payment for five years can benefit from a 20% rebate. Additionally, individuals replacing old, polluting vehicles with new ones will receive a 15% concession, valid for eight years. Furthermore, electric, hybrid, and flexi-fuel vehicles have been granted full exemptions from motor vehicle taxes, encouraging the adoption of eco-friendly transportation options.
This revised tax structure is expected to enhance the affordability of vehicle ownership in Sikkim, supporting the state’s transport ecosystem while promoting environmentally sustainable practices.
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