Personal cars and other vehicles in Haryana will pinch buyers a little more with the state government deciding Sunday to impose a one-time token tax on them.

Vehicles priced up to Rs.400,000 will attract a one-time tax of Rs.2,000 even if they are privately owned.

Cars priced between Rs.400,000 and Rs.1 million will attract a tax of one percent of the value of the vehicle. For a vehicle costing Rs.1 million, the tax will be Rs.10,000.

For vehicles priced over Rs.1 million, the rate of tax will be 1.5 percent.

The tax will also be imposed on imported vehicles registered in Haryana and the rate will be calculated on the total price of the vehicle, including import duty.

Chief Minister Bhupinder Singh Hooda, whose cabinet took the decision Sunday, defended the move to impose the token tax on vehicles by saying it was lesser than the levy in adjoining states like Punjab and Rajasthan.

Hooda said the tax had existed in Haryana earlier and had only been rationalised. The tax will generate additional revenue of Rs.400 million for the state, he claimed.