The group of ministers on transport constituted by the ministry of road transport and highways has recommended a uniform structure of road tax for vehicles across states.
In its meeting held in Guwahati on Thursday, the ministerial panel 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. Moreover, this will be a relief to genuine cases requiring transfer of vehicles.
The pane, headed by Yunus Khan, Rajasthan's minister for transport, 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 in Guwahati was held to consider the one nation one tax and one nation- one permit proposal.
The panel has also recommended a national bus and taxi permit on lines of such permit for goods transport.
Since the annual growth of public transport in India only around 2 per cent, as against a 20 per cent annual growth in the private transport sector, the panel felt a national permit will give a much needed fillip to public transport and help reduce road congestion and its allied problems.
In order to promote alternate fuel for vehicles the panel has proposed liberalising the permit system for electric vehicles. In addition, it has recommended raising taxes on diesel vehicles by 2 per cent while lowering the tax on electric vehicles.