Why Nagaland and Haryana are magnet states for vehicle registration

In an interesting revelation, it has come to light that a substantial number of trucks, dumpers, and heavy vehicles in Delhi and several other states across the country are being registered in Nagaland and Haryana. This intriguing trend has raised questions and piqued curiosity, as these states are geographically distant from one another, and yet serve as the primary locations for registering heavy vehicles.

According to a report by News18, this phenomenon is not a mere coincidence; there exists a compelling rationale behind this choice.

The driving factor behind this unconventional registration trend is the imposition of road tax by state governments. The road tax varies from one state to another, resulting in varying costs for registering the same type of vehicle. However, what makes Nagaland stand out is its remarkably lower road tax, making it one of the most cost-effective states in the country, not only in terms of road tax but also in registration fees.

News18’s report further reveals that registering a vehicle in Nagaland is not only budget-friendly but also incredibly convenient. Importantly, vehicle owners are not required to be physically present during the registration process. This means that individuals who have acquired heavy vehicles in regions like Delhi, Uttar Pradesh, or Bihar can complete the registration process in Nagaland by merely submitting the necessary documentation and fees. The streamlined registration process has drawn people from far and wide to Nagaland to register their heavy vehicles.

While Nagaland may lead the pack, Haryana emerges as another economical destination for heavy vehicle registration in the North. The report further added that a significant number of vehicles in North India are now registered in Haryana due to its straightforward registration procedures. The same trend can be observed in South India with Pondicherry serving as a hub for vehicle registration for Karnataka and Tamil Nadu.

Understanding Nagaland’s Road Tax

The road tax in Nagaland is a critical source of revenue for the state government. These funds are essential for the maintenance and construction of the state’s road infrastructure.

According to godigit.com, the Nagaland Motor Vehicles One-time Taxation Act of 2009 is responsible for governing the road tax in Nagaland. Any individual purchasing a new vehicle in Nagaland is required to pay the road tax. The amount of road tax payable depends primarily on the cost of the vehicle. However, it is also influenced by other factors such as the type of vehicle, the manufacturer, its age, its intended purpose, and the state of manufacture.

According to the Nagaland Motor Vehicles Taxation (3rd Amendment) Act of 2009, non-transport vehicles (vehicles not used for hire or reward) are subject to a one-time tax for a period of 15 years based on the cost of the vehicle. The rates are as follows: (1) Two-wheelers – 5% of the cost of the vehicle. (2) Three-wheelers – 10% of the cost of the vehicle. (3) Four-wheelers – 5% of the cost of the vehicle.

Vehicles registered in other states that have already paid a one-time tax in those states, upon migration to the state of Nagaland, shall be levied a one-time tax equivalent to the cost of the vehicle, after accounting for a depreciation value rebate at the rate of 7% per annum for previous years.

Upon the expiration of a vehicle’s 15-year service life, further renewal of the vehicle’s registration for a period of 5 years will require payment of a one-time tax at the rate of 2% of the original cost of the vehicles.

However, in a development in September 2023, the Nagaland Assembly passed The Nagaland Motor Vehicles Taxation (Amendment) Bill, 2023, aiming to revise the taxes on motor vehicles. The specifics of the new taxation rates could not be ascertained at this time.

Disclaimer: This news article was written by Mokokchung Times with inputs from agencies.