Assam Assembly passes Motor Vehicle Taxation Bill for levying taxes on AC sleeper buses

The Assam Assembly has passed The Assam Motor Vehicle Taxation (Amendment) Bill, 2021 for levying taxes on air-conditioned sleeper buses.

The registration of sleeper buses could not be done by the Registering Authority due to absence of specified rate of Motor Vehicle Taxes in respect of the sleeper buses in the existing Taxation Schedule which was notified in the year 2015.

Due to the absence of rate of Motor Vehicle Taxes in respect of Sleeper buses, the Transport Department is losing a considerable amount of legitimate Motor Vehicle Taxes. Further, the State Transport Authority, Assam, in its meeting held in September 2019 decided that the Commissioner of Transport, Assam to submit a proposal relating to introduction of Motor Vehicle Taxes in respect of Sleeper buses.


In view of the above, Amendment of Assam Motor Vehicle Taxation Act was proposed, so that the government will earn a substantial amount of revenue from sleeper buses in the form of Motor Vehicle Taxes at the time of registration of such vehicles and renewal thereof. This will also bring about reforms in the public transport system thereby ensuring the convenience of traveling public.

The amendment bill had proposed to levy Rs 9,000 annual tax on fully built air-conditioned sleeper contract carriage buses with seats or berths up to 20, however Transport Minister Chandra Mohan Patowary accepting the opposition parties demand decreased the same to Rs 8,000 per annum.

The rate with a berth capacity of over 20 was kept at Rs 12,000 per annum.