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Out of Rs 700 cr of revenues in the first quarter of current financial year from the transport sector, a major chunk has come from sales of trucks.
Rajasthan is leading seller of heavy vehicles in North India
Customers are now coming from neighboring states to purchase, giving boost to government’s earnings.
In a rare of sorts, state is earning from the sector most unexpected. Out of Rs 700 cr of revenues in the first quarter of current financial year from the transport sector, a major chunk has come from sales of trucks. “There has been boost in sales as VAT was reduced by 2% in budget. This made the total sales tax one of the lowest in the region,” said an official.
Sources claim segment is very small but volumes in it can still bring huge revenues. To encourage buyers from other parts, dealers and manufacturers were roped in. “We asked them to publicize about the taxes in Rajasthan. Since it is niche market, we identified major buyers like transporters, those in constructions and even government bodies. As information spread, buyers from across North India started visiting to buy trucks,” added the officials. VAT on trucks in Haryana, Punjab, Uttar Pradesh, Gujarat and Madhya Pradesh ranges from 15% to 20%, which is much higher than Rajasthan. On an average, a truck costs between Rs 25-45 lakh.
The sales figures also brought cheers to officials in Rajasthan as medium and heavy commercial vehicles (trucks) hit a roadblock in June, with sales growth falling below expectations. Upbeat by the figures in first quarter, the state is now looking to lure buyers beyond North India. tnn
Reduction in VAT over purchase of trucks has resulted in making Rajasthan a leading seller of heavy machines in North India. Customers are now coming from the neighboring states to buy, giving boost to government’s earnings.
In a rare of sorts the state is finding earnings from the sector most unexpected. Out of Rs 700 cr of revenues in the first quarter of current financial year from the transport sector, a major chunk has come from sales of trucks. “There has been boost in sales as VAT was reduced by 2% in the budget. This made the total sales tax one of the lowest in the region” said an official.
Sources claim segment is very small but volumes in it can still bring huge revenues. To encourage buyers from other parts, dealers and manufacturers were roped in. “We asked them to publicize about the taxes in Rajasthan. Since it is niche market, we identified major buyers like transporters, those in constructions and even government bodies. As information spread, buyers from across North India start visiting to buy trucks” added the officials.
VAT on trucks in Haryana, Punjab, Uttar Pradesh, Gujarat and Madhya Pradesh ranges from 15% to 20% which is much higher than Rajasthan. On an average a trucks costs between Rs 25 lakh to 45 lakh.
The sales figures also brought cheers to officials in Rajasthan as medium and heavy commercial vehicles (trucks) hit a roadblock in June, with sales growth falling below expectations. Upbeat by the figures in first quarter, the state is now looking to lure buyers beyond North India.

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