The West Bengal government has introduced the West Bengal Motor Vehicles Tax (Amendment) Act 2024, which brings relief to small car owners in the state. In the amended act, small car owners will have to pay road tax at lower rates. Also, the amended act offers vehicle owners rebates on advance tax payments across different categories.
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According to the amended act, the lifetime road tax on private cars and vehicles that car 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, which is beneficial compared to the 5.5 per cent one-time road tax for five years from the pre-amendment tax regime.
As per the pre-amendment tax structure, the car owner pays an 11 per cent road tax if he or she retains the vehicle for even 10 years. However, after this amendment, the lifetime tax is lowered for the vehicle owners, which means if you own a petrol car and plan to pay lifetime tax for it for 15 years, you can pay 7.5 per cent of the value of the vehicle and drive it on roads in the state for 15 years. On the other hand, according to the pre-amended act, the owner is required to pay a 16.5 per cent tax for the car if he or she retains the vehicle for 15 years. It is noteworthy that the lifetime tax for petrol cars is counted on the basis of 15 years, while the duration for diesel cars is 10 years, which can be extended further after completion of the tenure by paying tax again.
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The West Bengal government hopes that this reduction in rate of lifetime tax for the vehicles will boost the revenue generation in the transport segment in the state. Also, the government hopes this move will bring more transparency and convenience for vehicle owners and reduce the tax evasion tendency of vehicle owners.
Besides the small cars, the newly introduced West Bengal Motor Vehicles Tax (Amendment) Act 2024 also brought relief for transport vehicles in different categories.
