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The Ministry of Road Transport and Highways has proposed a new series of vehicle registrations, replacing the state code with a pan-India IN code for personal vehicles. This is being done to do away with the complex re-registration process that vehicle owners have to re-register their vehicles when relocating to a different state. In a pilot project, this facility will be initially available to defence personnel, Central Government, State Governments, Central/ State PSUs, and private sector companies/organisations, which have their offices in five or more States/Union Territories.
This facility can be opted for voluntarily and can be opted for on new and existing vehicles; the various states’ registration processes remain intact.
There will be a standard motor vehicle tax across the country for vehicles registered under this scheme, levied for two years or in multiples of two years.
A uniform road tax rate has been proposed, which will be eight percent for vehicles under Rs 10 lakh, 10 percent for those valued between Rs 10-20 lakh, and 12 percent for vehicles above Rs 20 lakh. Diesel cars may be charged a two percent additional tax, while EVs may see a two percent cut.
The proposal has been sent to State governments for review, and a final resolution will be passed post this. This is to do away with the complex re-registration process when moving to a new state.
Currently, owners need to re-register their vehicles in a new State within 12 months of moving there. This includes obtaining a NOC from the State the vehicle was originally registered in, having the new registration number assigned in the new state, and obtaining a refund from the previous state.
