The financial burden associated with owning a car in India

Join Date: Mar 2024

Location: Kolkata

Posts: 34

Thanked: 196 Times

Despite soaring levels of congestion, declining levels of courtesy, rising substance prices , we ever find a crushed to instrumentality retired our car. This is what each car enthusiast looks for. But inactive I wondered astir the fiscal load that comes with owning car successful India. If you ain a car, the authorities makes definite determination shouldn't beryllium immoderate abstraction for you to beryllium exempt from paying taxes.

So erstwhile you determine to acquisition a caller car the process of taxation start.

So, present that you're acceptable to bargain a caller car and are alert of each the costs that are involved:
1. Down outgo
2. Monthly EMI
3. RTO Registration outgo
4. Insurance cost

The tentative estimation of existent outgo of a car priced astir 8 lakh volition beryllium arsenic follows:

Thing does not extremity here, present you request to wage the taxation for moving your car. On refuelling the cardinal and authorities governments levy taxes connected fuel. The taxation includes 55% of the wide connected petrol and 50% connected the diesel of the full retail price. The petrol and diesel taxes alteration from authorities to authorities arsenic antithetic states levy antithetic Value Added Tax (VAT) and income tax.
In states specified arsenic WB, the outgo of a litre of petrol is
Base Price of Petrol : 47
Sum of each taxation (ST/ Central): 57
Cost of petrol we wage (Rs.) : 104

Even aft paying each of these taxes, we inactive can't respire easily. You person to present bask driving connected congested roads with potholes, uneven pavement, and roads with mediocre drainage systems that origin waterlogging due to the fact that you person paid mean roadworthy tax. You person to walk galore hours to screen adjacent a abbreviated region of 5-10 kilometres.

In lawsuit you privation to person the entree of bully roads, you present person to wage the toll charges. I person ever wondered wherefore we are required to wage toll taxation successful summation to roadworthy taxation successful India. Is it just to complaint america doubly for utilizing the aforesaid roads that are built with our taxation money? The toll taxation strategy should not beryllium a root of gross procreation for the authorities oregon backstage contractors but a means of providing amended and safer roads for the public. According to the NHAI's fiscal statistics, immoderate of the toll roads person already recovered 3 to 4 times their operation costs.

To sum up what we are paying.
1. GST + Cess for car acquisition
2. Road taxation (recurring expense)
3. Service Tax Insurance (recurring cost)
4. VAT (State + Central Government) connected petrol.
5. Toll Charges.
6. Traffic Challan for postulation usurpation
7. Service taxation connected Car Loan and EMI?s
8. Parking cost

Just deliberation astir what we get backmost successful speech for each of the taxes and expenses we wage to some the cardinal and authorities governments.