Multiple Taxation on Car Purchase and Usage

CA Ruby Bansal (Finance Professional) (6914 Points)

10 December 2024  

One of the Politician said:

  • When you earn money, you pay income tax from that.
  • When car is purchased, tax is paid on buying the car.
  • Tax & Cess charged for road maintenance and development.
  • Tax on motor insurance premiums.
  • Fuel Tax which includes excise duty and VAT on petrol/diesel.
  • Toll Tax charged for using certain roads or highways.

Impact on People: 

These layers of taxation significantly increase the cost of owning and using a car, with toll taxes being a major burden for daily commuters and common people.

What do you say?