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dated February 8, 1956: Tax on motor vehicles

The Union Transport Minister, Mr. Lal Bahadur Shastri, said in New Delhi on February 6 that the rising incidence of taxation on motor vehicles, direct as well as indirect, was one of the factors retarding the progress of the motor industry. Addressing the 15th session of the Transport Advisory Council, he said taxes on motor vehicles were generally not based on any clearly defined principle or any accepted policy. In view of this, the Motor Vehicles Taxation Enquiry Committee had recommended that the Centre should promote a legislation laying down the principles on which taxes on motor vehicles should be levied by States and the maximum incidence of such taxes.

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