The Ministry of Road Transport and Highways (MoRTH) has announced a fresh set of guidelines for levying road tax on imported vehicles, aiming to bring greater clarity, consistency, and fairness in taxation across states. These new rules seek to address longstanding concerns around ambiguities in valuation, unequal state-wise treatment, and underreporting during the registration of high-value foreign vehicles. The updated framework introduces uniform assessment parameters, applicable to both completely built units (CBUs) and semi-knocked down units (SKDs).

Under the new guidelines, road tax calculation for imported vehicles will now be based on the declared value at the port of entry, inclusive of customs duties, insurance, and freight charges, rather than on dealer invoices or arbitrary assessments. This move is expected to eliminate loopholes and ensure that luxury and premium foreign vehicles contribute proportionately to public infrastructure. Additionally, all imported vehicle owners will be required to submit verified import documents and undergo a centralized valuation authentication before registration.

State transport departments have been instructed to align their systems with the revised norms and ensure full compliance during vehicle registration. The guidelines also encourage states to adopt digital documentation and tracking systems for imported vehicles to reduce fraud and ensure tax integrity. Industry experts believe the policy will bring more transparency while creating a level playing field for domestic and foreign vehicle owners. The new rules are effective immediately and will apply to all imported vehicles registered after the notification date.