Chandigarh is a city in northern India that serves as the capital of the Haryana and Punjab states. Road tax is an indispensable aspect of car ownership and guarantees that all the roads in Chandigarh will be in perfect working order for motorists. 

Most of the tax revenue is spent on maintaining local roadways. At the same time, some is also invested back into enhancing transportation systems within the city.

In this article, we simplify the complexity of the road tax system in Chandigarh, helping you understand the rates, factors affecting them, and even the exemptions available to facilitate your swift vehicle registration.

Road taxes are within the state's purview under Article 280 of the Motor Vehicle Act 1988. In Chandigarh, this tax applies to private and commercial vehicles once purchased and registered. Such resources are essential for maintaining roads and ensuring the safety of passengers.

In Punjab, road tax is imposed on every vehicle regardless of its seating capacity, specifications, cargo, etc. This tax is raised for building new roads and repairing old ones, thus enhancing safety for all road users.

In this context, Punjab, too, has accepted this hi-tech development. It became the first state in the country to fully adopt VAHAN and SARATHI, which involve computerising transport activities and enhancing vehicle and driver registration.

Road tax in Chandigarh is determined by various factors, including:

1. Type of Your Vehicle

The type of vehicle you own greatly influences the computation of road tax. Rates vary depending on whether it's a two-wheeler, four-wheeler, or a car registered in another state:

• Two-wheelers are relatively cheaper in tax liabilities than big haulage trucks and larger vehicles.

• Four-wheelers, like cars and SUVs, have higher tax rates based on factors like weight and engine capacity.

• Three-wheelers and vehicles registered from other states are tax assessed differently since each state has its taxing policies and jurisdictions.

2. Purpose of Usage: Personal or Commercial

The purpose for which the vehicle is intended to be used, either personal or commercial, also has implications on the road tax:

• Personal cars and motorcycles, such as those for family usage, attract reduced road taxes compared to standard commercial vehicles.

• Commercial vehicles such as buses, cabs, trucks, and other miscellaneous vehicles are more tax-liable than personal vehicles due to the rate of contamination and depreciation they cause on roads.

3. Engine Capacity

Engine capacity, measured in cubic centimetres (cc), is another critical factor in road tax calculation:

• For two-wheelers, the taxation for engine size falling under 125cc is subject to lower taxes.

• Four-wheelers with larger engines, such as SUVs and luxury cars, are taxed higher because they have a greater impact on roads and the environment.

4. Type of the Model of Your Vehicle

Even the model and type of vehicle—standard, luxury, or sport—affects the tax rate, and they must differ. Standard vehicles pay normal rates, whereas luxury and premium ones pay higher rates because of their higher market value and increased strain on road infrastructure.

5. Fuel Type

Fuel type is another important factor in determining road tax. The rates vary depending on whether the vehicle runs on petrol, diesel, electricity, or hybrid technologies: 

• Diesel vehicles tend to have higher taxes to promote environmental conservation.

• Electric vehicles (EVs) may benefit from tax incentives or exemptions to encourage eco-friendly transportation.

6. Ex-Showroom Price of Your Vehicle

High ex-showroom prices that cause more regarding taxes and insurance play a key role in assessing road tax. High-end vehicles like luxury sedans and premium motorcycles attract more taxes than cheaper varieties.

7. Seating Capacity

Seating capacity plays a major role in tax calculation for commercial vehicles. Larger vehicles, such as buses or passenger vans, are taxed more due to their size, wear on roads, and commercial nature.

Paying road tax online is a simple and convenient way to avoid lengthy and tiring queues. You can quickly complete your payment by following these steps:

Step 1: Visit the official e-Vahan portal and navigate the ‘Tax Payment’ section. This marks the beginning of your online tax payment process.

There is a civil penalty for not paying the road tax in Chandigarh, which usually varies between amounts of ₹1000 to ₹5000 and extends to intensity and number of days of nonpayment of the tax. Besides these penalties, the vehicle owners must pay the default amount of tax.

With such penalties and legal matters looming, it becomes necessary to clear any road tax dues. Paying up road tax on time helps encumber all issues associated with the law and works on improving and constructing the motor roads in the City of Chandigarh that cater to the general public and the city’s workers.