Bhubaneswar: The Odisha government has decided to bring down the registration tax on luxury vehicles.
A decision to this effect was taken at the State Cabinet meeting here on Saturday.
Briefing mediapersons after the meeting which was presided over by Chief Minister Naveen Patnaik at the State Secretariat here, Chief Secretary Aditya Prasad Padhi said the luxury vehicles costing Rs 40 lakh and more was taxed at 20 percent. It has now been reduced to 10 percent, he added.
According to the new tax structure, 6 percent tax will be levied on registration of vehicles costing up to Rs 5 lakh; 8 percent on vehicles between Rs 5 lakh and Rs 10 lakh and 10 percent tax on vehicles priced more than Rs 10 lakh, Padhi informed.
“The decision was taken as sales in the state dropped after vehicles became costlier following an increase in taxes in 2017 and people went to other states for registration of four-wheeler,” he said.
The Cabinet also decided to reduce the registration tax on luxurious stage/contract carriers in Air Conditioned Deluxe and Sleeper and Fully Built Air Conditioned Sleeper categories.
In another decision, the lease rental of government-owned IT Towers/ facilities both for core space and incubation space revised and relevant provision of ICT Policy 2014 modified.
“To encourage opening of more IT centres and start-ups in the state, the Cabinet decided to reduce the rental charges for core space and incubation space in all designated government-owned IT Towers to Rs 20 per square feet for the super built-up area,” Padhi added.
