It’s looking quite likely that owners of full-electric vehicles will be paying more for their vehicle’s road tax in the coming future, if what is apparently emerging is right. Word from the grapevine is that the road transport department (JPJ) will be moving to calculating the road tax rates for electric vehicles based on their motor kilowatt output instead of the traditional engine cc displacement as previously utilised. This will effectively alter the payable road tax rate for EVs, which was initially drafted for calculation based on a kilowatt rate, and for which the table has been in place since 2011. According to JPJ sources, the rates for EVs were previously keyed in by clerks under the cc category during the vehicle registration, as a matter of familiarity. This is set to change. A hint of the possible revision started last week, when a guideline on the calculation of the road tax for pure electric vehicles began to circulate around social media circles, with some … [Read more...] about Local EV road tax to finally switch to kW-based rate?
Paying road tax
POTENTIAL new car buyers looking to dodge tax hikes in 2019 may want to consider going electric. All motors, not just new models, will be hit with the increase on its Vehicle and Excise Duty (VED) from April 1 this year to account for inflation. Under the old system, cars with CO2 emissions lower than 100g/km were exempt from paying VED. But since April 2017, any new vehicle producing just 1g/km is eligible for road tax - meaning only owners of new electric cars don't have to pay. AutoExpress has put together a list of the best motors exempt from road tax under the new rules - and some of their second-hand hybrid variants also dodge taxes. BMW i3 - from £30,980 The BMW i3 is widely considered as the industry leader in comfort and economy for its category. Despite its relatively high price tag, the i3 is perfect if you're looking for a spacious and well thought out vehicle. You can take comfort in knowing you'll have 195 miles of range before needing to charge their motor. And … [Read more...] about These are the top five cars to buy in 2019 that mean you won’t pay any road tax
India’s vehicle taxation policy could soon change. Unlike the present system where road tax and excise duty on a vehicle increases proportionately with the cost and intended usage of the vehicle, the new tax system intends to tax a vehicle based on its tailpipe emissions. Effectively, a vehicle with a larger, higher polluting engines will see a higher rate of tax rather than a vehicle of the same size but with a smaller engine, or a hybrid engine or an electric powertrain. By taxing vehicles in such a way, the government hopes to make cleaner vehicles cheaper to buy and polluting vehicles more expensive to buy. Eventually, consumers may start preferring cheaper, low polluting vehicles, prompting vehicle manufacturers to build more such vehicles, thereby reducing pollution levels and the country’s dependence on expensive petroleum imports. Notably, India has had success with a similar scheme, where sub-4 meter compact cars with petrol engines under 1.2 liters and diesel … [Read more...] about If your car pollutes more, you’ll soon have to pay more tax
There are more than 28 million vehicles registered with the Road Transport Department (JPJ) across the country, but the department says that less than 70% of these are fully road legal, Bernama reports. According to deputy director general of planning/operations Datuk Wan Ahmad Uzir Wan Sulaiman, out of the total, only 19 million vehicle owners have been actively renewing their road tax and vehicle insurance every year. “The rest who own vehicles do not renew their road tax and vehicle insurance,” he said He said that the department had in March last year attempted to get vehicle owners to renew their insurance and road tax with an ‘offer’ that allowed defaulters whose road tax expiry was not more than three years to go through the normal process. The exercise – which has received the support and cooperation from insurance companies – is apparently on again and runs until June 30. The department said that vehicle renewals can be made at any state JPJ … [Read more...] about Only 19 million out of 28 million vehicle owners pay for road tax and renew insurance every year
The Indian road tax structure is quite confusing and each state has different rules and tax percentages. In a new case, a judgment has been passed that will allow the consumer to save more money while registering new, discounted vehicles. Here’s how. The court has said that the lifetime tax should be levied on the invoice price rather than the ex-showroom price of the vehicle. Which means, the Road Transport Authority (RTA) will now consider the price printed on the invoice rather than the ex-showroom price while calculating the lifetime tax of the vehicle. It means that the vehicles that are on discount will have to pay lower tax from now. This particular case is from Telangana, where the RTAs were calculating and collecting tax on the ex-showroom price of the vehicle announced by manufacturers. Advocate Kishore Rai, who bought a Volvo XC60 SUV at a discount of Rs. 3 lakh on ex-showroom price had to pay tax on the ex-showroom price set by the manufacturer. While the ex-showroom … [Read more...] about Road tax on discounted vehicles to decrease, thanks to High Court