Taxation Authority and Legal Framework Road tax on two-wheelers is levied by individual state governments under their respective Motor Vehicles Taxation Acts. The power to impose and collect tax is granted by the Constitution under the State List. Each state defines...
Policy Objective Road tax exemption for electric vehicles is aimed at promoting clean mobility. The government encourages EV adoption to reduce carbon emissions. Tax relief is part of broader national and state-level EV policies. It helps lower the initial cost of...
General Applicability Road tax is mandatory for all motor vehicles operating on public roads in India. It applies to private, commercial, transport, and non-transport vehicles. The obligation begins from the date of initial vehicle registration. Payment is required to...
State Transport Departments Road tax collection is managed by the Transport Department of each state. These departments operate under the administrative control of the state government. They have the authority to implement, amend, and enforce road tax rules. Each...
State Government Responsibility Road tax in India is collected by the respective state governments. It is administered under the provisions of the Motor Vehicles Act, 1988. Each state has the authority to decide tax rates and collection methods. The tax revenue goes...
Funding Infrastructure Development Road tax provides financial support for building new public roads. It contributes to the expansion of highways, expressways, and rural roads. Funds are used by state governments to develop transportation facilities. It helps...
State-Level Tax Authority Road tax in India is primarily decided at the state level. The authority to set and collect road tax rests with state transport departments. Uniform rates are usually applied across all regions of a state. Local bodies do not generally...
State-wise Autonomy Road tax in India is governed by state governments, not centrally regulated. Each state has the power to frame its own road tax rules under the Motor Vehicles Act. The tax rates and methods of calculation vary from one state to another. State-level...
Type of Vehicle Road tax varies for two-wheelers, four-wheelers, and multi-axle vehicles. Private vehicles and commercial vehicles are taxed under different categories. Heavy-duty transport vehicles incur higher tax than light vehicles. Passenger vehicles and goods...
Based on Vehicle Type The calculation differs for two-wheelers, four-wheelers, and commercial vehicles. Private vehicles generally have a fixed or slab-based rate. Commercial vehicles are taxed based on usage and load capacity. Agricultural and special utility...