The government of India is pushing for the One Nation- One Road Tax, which will permit the vehicles to move across India both the goods and passenger vehicles by paying tax once for all instead of paying taxes every now and then, while passing across all the state borders. If the rule is introduced then there will be a standardized and systematic statute across the country.

The Group of Ministers (GoM) on Transport constituted by the Ministry of Road Transport & Highways has recommended a uniform structure of road tax for vehicles across states. In its meeting held in Guwahati on April 19, 2018, the GoM observed that a uniform tax structure will put a check on people registering their vehicles in low tax states and running them in other states. This would also bring necessary relief to genuine cases requiring the transfer of vehicles.

The GoM, headed by Mr. Yunus Khan, Minister for Transport, Rajasthan and comprising State Transport Ministers, seeks to find solutions to the various problems plaguing the road transport sector in the country so as to improve road safety and facilitate ease of transport. The meeting which was held in Guwahati, was inaugurated by Assam Chief Minister Mr. Sarbananda Sonowal, was held to deliberate upon One Nation- One Tax and One Nation- One Permit proposal.

The GoM has also recommended a national bus and taxi permit on lines of such permit for goods transport. Public transport in the country is growing annually at a rate of just about 2 percent, as against a 20 percent annual growth in private transport. A national permit will give the much-needed fillip to public transport and help reduce road congestion and its attendant problems.

In order to promote alternate fuel for vehicles, the GoM had proposed liberalization of the permit system for electric vehicles. In addition, it has recommended raising the tax on diesel vehicles by 2 percent while lowering the tax on electric vehicles.

Source - Press Information Bureau