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How many of us are tempted to drive down to Pondicherry to register their cars or bikes there? I am sure quite a few of us, that is because a Ford Figo’s on-road price is Rs. 5,59,236/- in Pondicherry, while the on-road price of the same car and variant is Rs. 6,26,031/- in Mumbai. The price difference of Rs. 66,000/- is quite shocking and the sole reason for this is the difference in road tax rates between the two states. If a proposal by a panel of highways ministry is accepted, then the on-road price of all cars and taxis in India will be more or less the same.

Currently road tax rate on cars is anything between 2% to 18%, which is a big difference considering how expensive cars have become. This has led to people buying vehicles from other states to save on road tax. This temptation of paying lower road tax has its shortcomings as police officials are becoming stringent with vehicles registered outside the state, fining them in large amounts. The Transport Development Council will be discussing this proposal today and if it goes through, we can the on-road price of cars to become cheaper in the metros. Fingers crossed!

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