Himachal Pradesh Motor Vehicle Taxation (Amendment) Bill, 2020

Sep 16, 2020 | by Avantis RegTech Legal Research Team


Commercial Compliance

The Department of Transport of Himachal Pradesh on September 09, 2020 has issued the Himachal Pradesh Motor Vehicle Taxation (Amendment) Bill, 2020 to further amend the Himachal Pradesh Motor Vehicle Taxation Act, 1972. 

The following amendments have been made:

• Section 2 (J-e), which specifies the definitions, has been substituted, namely: 

“Price of motor vehicle” in relation to a new vehicle means the ex-factory price of vehicle at the factory gate before applicable taxes.”

• Section 3 (2), which specifies the levy of tax on motorcycles, scooters, or personal vehicles, has been substituted, namely:

“There shall be levied, charged and paid to the State Government, a tax on motor cycles/scooters, personal vehicles, Private Service Motor Cabs or Construction equipment vehicles, used or kept for use in the State for a period of fifteen years from the date of purchase of vehicle at the time of registration under sub-section (3) of Section 41 of the Motor Vehicles Act, 1988 (59 of 1988) at the rates as may be specified by the State Government, by notification, on the basis of the price of such motor cycle/scooters, personal vehicles, Private Service Motor Cabs or Construction equipment vehicles, subject to the minimum of six percent and maximum of fifteen percent of the price thereof.”

• Section 3 (3), which specifies the levy of tax on motor cabs and motor taxis, has been substituted, namely: 

“Notwithstanding anything contained in sub-sections (1) and (2), there shall be levied, charged, and paid to the State Government, a tax on:

1. motor cabs or maxi cabs which are allowed to be converted as personal motor vehicles.

2. motor vehicles initially registered in any other State but being moved permanently to the State of Himachal Pradesh to be registered here for the first time.

3. Private Service Motor Cabs or Construction equipment vehicles already registered and paying tax on an annual basis for the remaining period of fifteen years, at the rates, as may be specified by the State Government, by notification, subject to maximum fifteen percent of the price of such motor vehicles to be determined by the taxation authority after deducting eight percent depreciation per annum from the original price of the motor vehicle.”

• Section 3(4), which specifies the levy of tax on motor scooters or personal and private motor vehicles, has been substituted, namely: 

“Notwithstanding anything contained in sub-sections (2) and (3), there shall be levied, charged and paid to the State Government, a tax on motor cycles/ scooters, personal motor vehicles, Private Service Motor Cabs or Construction equipment vehicles, used or kept for use in the State for every further period of five years from the date of their renewal of certificate of registration under sub-section (10) of Section 41 of the Motor Vehicles Act, 1988 (59 of 1988) at the rates as may be specified by the State Government, by notification, but not exceeding to the tax paid at the time of first registration of such motor cycles/scooters, personal motor vehicles, Private Service Motor Cabs or Construction equipment vehicles.”

[Bill No. 14 of 2020]


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