In the new budget, the tax on the registration of luxury vehicles has been increased.
According to the documents, the higher tax will be paid on 2001 cc engine capacity or large luxury import or domestic vehicle while 2001 cc to 2500 cc vehicle will be taxed at 6 percent of its value.
The finance bill proposes two tax brackets for vehicles based on their engine capacity. Vehicles with an engine capacity between 2501 and 3000 ccs will be subject to a fixed tax rate of 8% of their value. Meanwhile, vehicles with an engine capacity of 3000 ccs or more will be subject to a higher tax rate of 10% of their value.
Based on the provided documents, for a vehicle manufactured or assembled locally, the tax will be imposed based on the invoice value. In cases where engine capacity is not applicable, a 3% tax will be imposed on vehicles valued at 50 lacs.