Assam Cabinet Approves Rationalization of Motor Vehicle Taxation and MoU for Digital Transformation

Guwahati, August 22, 2024: In a significant move towards revising the state’s motor vehicle taxation system, the Assam Cabinet has approved the Assam Motor Vehicle Taxation (Amendment) Bill, 2024. The bill, which aims to amend the Assam Motor Vehicle Taxation Act of 1936, will be introduced in the upcoming session of the Assam Legislative Assembly. This amendment seeks to overhaul the existing tax slabs and recalibrate the One Time Tax (OTT) structure for various categories of vehicles.

Under the proposed changes, the tax rates for four-wheelers, two-wheelers, and small commercial vehicles, including E-rickshaws and E-carts, have been restructured. The revised tax rates for four-wheelers will range from 4% to 14% depending on the vehicle’s price, while two-wheelers will be taxed at rates between 6% and 10%, based on their cost. For small commercial vehicles, the OTT will vary, with E-carts and E-rickshaws being taxed at 2%, and three-wheelers used for goods and passenger transport being taxed at 6% and 4%, respectively.

New Motor Vehicle Taxation Structure:

– Four-Wheelers:

– Up to ₹3 lakhs: 4%
– ₹3 to ₹5 lakhs: 6%
– ₹5 to ₹20 lakhs: 10%
– Above ₹20 lakhs: 14%

– Two-Wheelers:

– Up to ₹70,000: 6%
– ₹70,000 to ₹3 lakhs: 8%
– Above ₹3 lakhs: 10%

– Small Commercial Vehicles (OTT):

– E-cart/E-rickshaw: 2%
– Three-wheeler (passenger): 4%
– Three-wheeler (goods): 6%

The amendments are designed to streamline taxation in the motor vehicle sector, ensuring a more equitable and straightforward tax regime.

In a parallel development, the Assam Cabinet has approved a one-year no-cost Memorandum of Understanding (MoU) with the Wadhwani Centre for Government Digital Transformation, Bengaluru. This strategic collaboration, initiated by the Chief Minister’s Office, aims to accelerate digital transformation across various government departments in Assam. The MoU will focus on enhancing the digital competencies of mid to senior-level government officials and promoting the modernization of government processes and services through the adoption of emerging technologies.

The initiative is poised to significantly enhance the efficiency and transparency of government operations, aligning them with contemporary digital standards.

Also read: Assam Expands Orunodoi 3.0 Scheme to Reach 37 Lakh Women