The buyers of new vehicles in Haryana are being charged a higher road tax for the registration of vehicles than neighbouring states.

While Punjab, Himachal Pradesh and the Union Territory of Chandigarh charge road tax on the vehicles’ cost after excluding taxes such as VAT, the vehicles owners in Haryana pay road tax on the total cost of the vehicle, including VAT.

“The value of the new motor vehicle (car and two-wheeler) for the computation of road tax shall be the purchase price inclusive of all expenses and taxes shown in the bill,” a communication from the Haryana Transport Commissioner said.

However, RTI information procured by Panchkula-based social activist Vijay Bansal from the Punjab Government clearly showed that road tax was charged on the actual price of the vehicle, excluding taxes.

Similarly, the information provided by the Registration and Licensing Authority, Chandigarh Administration, said: “Road tax for the registration of new vehicle was levied on the actual cost of the vehicle inclusive of a discount, excluding VAT and other taxes.”

Meanwhile, Bansal alleged that on an average any person going in for registration of a new car had to pay about Rs 10,000 extra in Haryana as compared to the neighbouring states. “This amounted to double taxation in Haryana as VAT was also a tax paid by a vehicle owner ,” alleged Bansal.

He threatened to move the Punjab and Haryana High Court as repeated representations to the state government had failed to elicit any positive response