In a strategic policy move, the Ministry of Road Transport and Highways (MoRTH) has constituted a Central Advisory Committee to comprehensively review and modernize the existing road tax structure across Indian states. The committee comprises senior officials from the Centre, state transport departments, taxation experts, and representatives from the logistics and automobile sectors. The primary goal is to develop a uniform, equitable, and technology-driven road tax system that aligns with current mobility trends and addresses interstate disparities.

The committee will examine key issues including varying state tax slabs, double taxation during vehicle transfers, the need for incentives for green and alternate fuel vehicles, and the potential for a nationwide digital tax framework. It is also tasked with exploring the feasibility of implementing a “One Nation, One Road Tax” policy to simplify compliance for vehicle owners and commercial fleet operators. A special focus will be placed on ensuring that the revised structure balances revenue needs of states with ease of mobility and fairness for citizens.

Officials stated that the committee will submit its recommendations within six months, following stakeholder consultations, data review, and legal analysis. The government aims to use these inputs to frame a model road tax policy that states can voluntarily adopt, potentially supported by financial or infrastructural incentives. The formation of the advisory body marks a major step toward transport reform, digital integration, and fostering a more unified national transport economy.