Lifetime tax on cars comes into effect from today

The West Bengal government has announced lifetime tax, a policy which will require car owners to pay tax only once. This policy is being met by disregard, by many automobile dealerships as due to the lowering in the tax amount, down payment rates for vehicles will rise gradually.

Lifetime tax policy has been initiated by the government to help collect more funds and additional resources. Though people will usually opt for the five yearly tax policy, rates of the lifetime tax have been decided in such a way so as to cause people to think twice before opting for one time tax payable after a period of five years. In such a scenario, only those who are opting for high end cars will not opt for the lifetime tax policy as they keep on changing their vehicles every couple of years.

The lifetime tax car owners will be paying on their cars will be equal to 10% of the price of their car. This new policy is in place for two wheelers, four wheelers and buses with seats up to 14 and not registered as a transport vehicle.