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DAILY NEWS ANALYSIS
24 January, 2020
2 Min Read
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Prelims and Mains focus: about the govt.’s move and its implications; need for reform in road tax structure
News: The Union government is making a renewed push to get states on board to levy a uniform road tax for personal vehicles across the country.
Why?
The move is expected to bring relief to automobile buyers, while also helping protect revenue of states as some consumers tend to purchase vehicles in states with lower taxes, resulting in a loss of revenue for those with higher taxes.
Background
About Road Tax
Road tax is paid during the registration of a vehicle in a particular state. It is levied along with the goods and services tax (GST) and directly impacts the price of a new vehicle.
Implications
Current scenario
Way forward
Source: Livemint
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