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One of the major source of revenue for a state is the collection of road taxes. Typically, cars in India have two prices, an “ex. showroom price”, which is defined as the price the manufacturer and seller charge the buyer, and the “on-road price”, which is the ex. showroom price plus road taxes and registration charges paid by the car owner. Usually, the on-road price always exceeds the ex-showroom price by around 10%. In Madhya Pradesh, the on-road price for vehicles is the sum of the manufacturer price and the cost of registration and taxes that are due to the Central and State governments. This also includes the cost of vehicle insurance. Under Section 39 of the Motor Vehicle Act, 1988, certain details on the taxes chargeable on motor vehicles in Madhya Pradesh are mentioned. This Section also highlights the guidelines on how to calculate tax on the vehicles sold or registered.
In India, Road tax is imposed by both the Central and State governments. The cumulative road tax imposed is subject to the traffic regulation, government rules, etc. This is the reason that road tax varies in different states. When you purchase a vehicle, you will be charged the central excise duty, central sales tax and state VAT. However, road tax is calculated based on the engine capacity, seating capacity and cost price. Road tax varies for different types of vehicles such as trucks, vans, cars, two wheelers etc.
The tax applicable for four wheeler is determined by the use of vehicles and its classification. The quarterly tax rates for motor car are:
| Category | Tax Rate (Per Quarter) |
|---|---|
| Unladen weight of up to 800 kgs | Rs. 64 |
| Unladen weight more than 800 kgs | Rs. 94 |
| Unladen weight between 800 to 1600 kgs | Rs. 112 |
| Unladed weight between 1600 to 2400 kgs | Rs. 132 |
| Unladen weight between 2000 to 3200 kgs | Rs. 150 |
| Tax for any trailer with the unladen weight of up to 1000 kgs | Rs. 28 |
| Tax for any trailer with the unladen weight more 1000 kgs | Rs. 66 |
| Unladen weight between 2000 to 3200 kgs | Rs. 150 |
| Tax for any trailer with the unladen weight of up to 1000 kgs | Rs. 28 |
| Tax for any trailer with the unladen weight more 1000 kgs | Rs. 66 |
Quarterly tax rates for city service are:
| Category | Tax Rate (Per Quarter) |
|---|---|
| Seating capacity up to 3+1 | Rs. 40 per seat |
| Seating capacity from 4 - 6 | Rs. 60 per seat |
Quarterly tax rates for taxi are:
| Category | Tax Rate |
|---|---|
| Seating Capacity from 3 - 6 + 1 | Rs. 150 per seat |
| Taxi seating capacity from 7 – 12 + 1 | Rs. 450 per seat |
Quarterly tax rates for Maxi cab are as follows:
| Category | Tax Rate (Per Quarter) |
|---|---|
| Seating capacity from 7 - 12 + 1 | Rs. 450 per seat |
Quarterly tax rates for Omni bus are:
| Category | Tax Rate (Per Quarter) |
|---|---|
| For private use seat capacity from 7- 12 | Rs. 100 per seat |
| For private use for seat capacity above 12 | Rs. 350 per seat |
Quarterly tax rates for private service vehicle are:
| Category | Tax Rate (Per Quarter) |
|---|---|
| Seating Capacity above 6 + 1 registered in the owner’s name | Rs. 450 per seat |
| Seating Capacity above 6 + 1 and plying on lease | Rs. 600 per seat |
Quarterly tax rates for Education bus are:
| Category | Tax Rate (Per Quarter) |
|---|---|
| Education Bus | Rs. 30 per seat |
Regional Transport Office collects Road tax at the time of registering your vehicle. You will be required to provide the registration documents of the vehicle and any other relevant document. You can also pay road tax online through the official website –Madhya Pradesh Transport Department.
Does Road tax in Madhya Pradesh vary in the cities of MP?
No, road tax remains the same across cities in Madhya Pradesh.
Is Road tax different in different states of India?
Yes, Road tax varies from one state to another as it is a tax levied on an individual state level.
Why does one have to pay Road tax?
We need to pay Road tax because road tax belongs to the state government to maintain the roads within the state. If you are using the roads of a state, it expects you to pay tax.
Is Road tax applicable for both personal and commercial vehicles?
Yes, road tax is applicable for both personal and commercial vehicles. However, in case you are driving a commercial vehicle across the country, you can avail a national permit for the same.
Does road tax vary according to the type of vehicle?
Yes, Road tax varies according to the type of vehicle.
