In a bid to relieve the transport sector from financial losses suffered due to a lockdown imposed during the second wave of Covid-19, the Cabinet has approved exemption from the Motor Vehicle Tax to contract carriage vehicles (up to 16 seater), buses of religious organisations and stage carriage buses (up to 35 seater).
With these decisions, the existing rates will be reduced from Rs 30,000 to Rs 20,000 per bus per year for all types of stage carriage buses (up to 35 seats, private/STUs) and to withdraw 5 per cent annual increase in the rate of Motor Vehicle Tax. Besides, it will give exemption from the Motor Vehicle Tax to contract carriages up to 16 seater from May 20, 2020 to December 31, 2020 and buses of religious places from March 23, 2020 to December 31, 2020.
The Cabinet has also decided to reduce 10 per cent Simple Interest and 3 per cent penal interest on outstanding dues of developers such as of the EDC to 8.5 per cent compounded annually in urban development authorities. Besides, the Cabinet also decided to drop normal and penal rates of interest to 7.5 per cent compounded annually and 10 per cent compounded annually in future for new as well as ongoing projects.