Anyone planning to buy a new bike, scooter or auto rickshaw in Bihar will now have to pay more for it, after the state cabinet cleared a hike in motor vehicle tax. The proposal was approved at a cabinet meeting chaired by Chief Minister Samrat Chaudhary, and once the new structure kicks in, buyers of new two-wheelers and three-wheelers will pay noticeably more, since the extra tax feeds straight into the on-road price of the vehicle.
Two-wheelers to cost one percent more in tax
Under the cabinet's decision, anyone buying a new bike or scooter will now pay 1 percent more in motor vehicle tax than before. Road tax on two-wheelers, which earlier ranged between 8 and 12 percent, has been raised by that additional 1 percent. It might sound like a small change, but on higher-priced bikes the difference can add up to Rs 1,000 or more. In other words, the costlier the bike, the bigger the extra tax burden turns out to be, and that additional amount gets folded straight into the final on-road price a buyer pays at the showroom.
Flat Rs 1,000 extra on new autos and e-rickshaws
The tax hike isn't limited to two-wheelers. The cabinet has also decided to raise tax on three-wheelers, meaning anyone buying a new auto rickshaw or e-rickshaw will now have to pay a flat Rs 1,000 on top of the tax that was already applicable. This is an additional amount over and above the existing tax structure, and it will directly raise the upfront cost for people who buy autos or e-rickshaws to earn a living. The government has clarified that the revised tax will apply only at the time of purchase and registration of a vehicle, which means the extra cost falls only on buyers of new vehicles, current vehicle owners will not be affected by this change.
Impact on Bihar's best-selling bikes
The decision will also be felt in the pricing of the bikes that sell the most in Bihar. While the increase isn't steep, the on-road price of every new bike will edge up compared to before. It's worth remembering that the final on-road price a buyer pays isn't decided by tax alone, it also depends on the city, the relevant Regional Transport Office, insurance premiums, dealer charges and the company's prevailing ex-showroom price. So the on-road price of the same bike in Patna could differ from its price in another district, even though the new tax rule applies uniformly across the state.
Why the state government raised the tax
According to the government, the Bihar Motor Vehicles Taxation Act, 1994 had not seen a major revision in a long time, and the tax structure has now been updated to reflect changing economic conditions and current requirements. The government expects the hike to boost state revenue, with the additional money expected to fund development work. So if you're planning to buy a new bike, scooter or auto in Bihar in the coming days, you should be ready to pay somewhat more once the new tax structure takes effect. It would be wise to check the updated on-road price with your dealer before finalising a purchase, so there are no surprises when it comes to budgeting for the vehicle.
