GUWAHATI: The state cabinet has approved the Assam Motor Vehicle Taxation (Amendment) Bill, 2024 on Wednesday, August 21.
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This bill, which seeks to amend the Assam Motor Vehicle Taxation Act of 1936, will be placed before the Assam Legislative Assembly for consideration.
The proposed amendment aims to restructure the current tax categories and revise the computation of One Time Tax (OTT) for motor vehicles in the state. A key feature of the bill is the inclusion of three-wheeler vehicles, such as e-rickshaws and e-carts, as well as certain four-wheeler goods and passenger vehicles, under the OTT regime. This tax will be payable at the time of the vehicle’s initial registration in Assam.
The new tax slabs proposed for four-wheelers under the amended bill are as follows:
- Up to ₹3 lakh: 4%
- ₹3 lakh to ₹6 lakh: 6%
- ₹5 lakh to ₹20 lakh: 10%
- ₹20 lakh and above: 14%
For two-wheelers, the tax slabs are structured as:
- Up to ₹70,000: 6%
- ₹70,000 to ₹3 lakh: 8%
- Above ₹3 lakh: 10%
The bill also outlines the proposed OTT rates for small commercial vehicles:
- E-cart/E-rickshaw: 2%
- Three-wheeler (Passenger): 4%
- Three-wheeler (Goods): 6%
The Assam government believes that this rationalised taxation structure will bring fairness to the vehicle tax regime in the state.