Jammu, April 7: In a significant move aimed at encouraging vehicle purchases through local dealerships, the Government of Jammu and Kashmir has announced an additional 3% Motor Vehicle (MV)/Road/Token tax on all fresh non-transport vehicles purchased from outside the Union Territory (UT) but used on public roads within Jammu and Kashmir.
As per the notification (S.O. 81) issued by Niraj Kumar, Secretary of the Transport Department, the new taxation policy will come into effect from April 1, 2025. The directive is issued in continuation of the earlier notification SRO-492 dated 01.08.2019 under the powers conferred by Section 3 of the J&K Motor Vehicles Taxation Act, 1957.
According to the order, the additional 3% tax will be levied on vehicles whose manufacturers have authorized dealership or sale points within J&K but are purchased from outside the UT. This tax is in addition to the existing 9% vehicle tax already charged on the sale price of such vehicles.
The move is expected to curb the practice of vehicle registration outside J&K to avoid local taxes and to boost business for local automobile dealers.
