By Bizodisha Bureau, Bhubaneswar, July 21, 2018: There is some good news for affluent people. Odisha government on Saturday decided to slash the tax rates on the registration of high-end personal cars from 20 per cent to 10 per cent.

The Cabinet meeting here presided over by chief minister Naveen Patnaik approved a proposal in this regard.

“The luxury cars costing Rs 40 lakh and above was taxed at 20 per cent. This would now cost 10 per cent after cabinet’s approval,” chief secretary A P Padhi told reporters here following the cabinet meeting.

In fact, the government has been losing motor vehicle revenue as the sale of costlier vehicles have gone down in the state because the people opted to go to other states for registration of vehicles where the tax rates on the registration of high-end personal cars were less than that of Odisha.

The ultimate aim of the government for enhancing the state’s motor vehicle revenue was defeated with the prevailing tax slab, Padhi pointed out.

The state government also has decided to reduce the tax slabs and limit it to 6 per cent, 8 per cent and 10 per cent on other cars.

The cars valued Rs 5 lakh and less will be taxed at 6 per cent as registration while the rate of tax for the cars valued between Rs 5 lakh and Rs 8 lakh to be taxed at 8 per cent. All vehicles valued at Rs 10 lakh and above to be taxed at 10 per cent under the changed decision, he said.

The government has also decided to reduce the registration tax on luxurious stage/contract carriers in the category of Air Conditioned Deluxe and Sleeper and Fully Built Air Conditioned Sleeper.

The cabinet in another decision revised the lease rental of government owned IT Towers/ facilities both for core space and incubation space and modify the relevant provision of ICT Policy 2014, Padhi said.

The chief secretary said the step is being taken to encourage opening of more IT centres and startups in the state.

“The Cabinet also decided to reduce the rental charges for core space and incubation space in all designated government owned IT Towers to Rs 20 per square feet for super built up area,” he said.

The Cabinet also approved nine other proposals.