Sikkim Transport Department refutes misinformation on re-registration tax, clarifies cap at Rs 5,000

In response to widespread confusion and misleading social media posts, the Motor Vehicles Division of the Transport Department, Government of Sikkim, has officially clarified the revised structure for vehicle re-registration and ownership transfer taxes. The clarification, issued via a press release dated June 18, 2025, aims to dispel the misinformation currently circulating online regarding the financial implications for vehicle owners.

Recent social media posts falsely claimed that an exorbitant fee of ₹25,000 was being charged as additional tax on the re-registration of old vehicles in Sikkim. These reports, the department clarified, are entirely baseless and misleading. As per Notification No. 19/CCS/GOS/MVD/2025, dated 27th March 2025, the maximum additional tax levied is capped at ₹5,000.

"The information being circulated on social media platforms is incorrect," the department stated, assuring vehicle owners that there has been no such drastic increase in the tax amount. The revised tax was introduced as part of a regulatory update to streamline ownership changes and ensure compliance with vehicle norms in the state, but not with the intention of imposing undue financial burdens on the public.

Officials emphasized that the additional tax on re-registration is calculated based on a vehicle’s age and category, and the cap of ₹5,000 is a maximum limit, not a flat rate applicable to all. The move is aimed at promoting better management of older vehicles, many of which require updated documentation during transfer of ownership or movement from other states.

The department has advised citizens to refer only to official sources for accurate information. For transparency, all relevant details of the revised tax structure are available on the department’s official website: www.transportdepartment.sikkim.gov.in.