Dhangadi, July 30

The new tax rate on vehicles imposed by the government in Province 7 has not gone down well with the people here, who have termed the new tax rate ‘unscientific’.

Among others, annual tax rate on motorbikes is said to be double the rate of other provinces. While it has fixed Rs 30,000 as annual tax on 400-plus cc bikes, tax on 251 to 400cc, 151 to 255cc and 126 to 150cc stand at 16,000, 8,000 and 4,000 rupees respectively. The tax rate for bikes up to 125cc is on a par with the rate in other provinces. The province has fixed annual tax at Rs 20,000 for buses and trucks, however.

Financial expert Janakraj Pande described the province-imposed tax as unscientific and impractical. “In other countries, the government provides subsidy on basic necessities, but the provincial government here looks to discourage even the use of two-wheelers.”

Former chair of Kailali Chamber of Commerce and Industry Dineshraj Bhandari also criticised the tax rates declared on vehicles, especially on two-wheelers.

Financial Affairs and Planning Ministry Section Officer Sundar Panta informed that the tax was fixed in coordination with other provinces.