Two wheelers get dearer in Maharashtra due to tax hike

As an increased basic motor vehicle tax came into effect in Maharashtra yesterday, the two wheelers have gotten more expensive. The hike is up to 3% for regular vehicles but the tax slab for imported motorcycles has been doubled.

Earlier, both Indian and imported two wheelers in the state attracted a tax of 7% but now, imported motorcycles are being taxed between 16-20%.

Indian Scout India launch
The tax slab for imported vehicles now range between 16 and 20%.

Talking to Times Of India, Subhash Pedamkar, Deputy RTO who is in charge of registering new bikes in South Mumbai, stated that since most of the motorcycles are of high value (around INR 1.5-2 lakhs) these days, the customers would feel the pinch of the increased tax structure.

TOI reports that corporates that are purchasing two wheelers for companies have to pay a tax of 21%. The increased tax structure will affect motorcycle aficionados who normally change their high-end steeds every 2-3 years.

2016 KTM RC 390
Buyers of high value motorcycles in Maharashtra will feel the pinch.

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The basic motor vehicle tax is paid to the RTO by the dealer on behalf of customers during the registration process. Since the added tax burden is passed on to customers, dealers are not worried. Given that most mass market two wheelers are used for commuting, the dealers don’t expect the demand to be impacted by the state government’s tax hike.

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