Transportation tax

Tax Glossary Definition

Transportation tax

Transportation tax is a levy imposed on vehicles, ships, aircraft, or other modes of transport for using public infrastructure such as roads, bridges, waterways, and airports maintained by the government. The tax helps fund the construction, maintenance, and improvement of transportation networks.

Example: A car owner pays an annual road tax of ₹10,000 for using public roads in India. Similarly, an airline may pay landing and takeoff fees at an airport, which function as a form of transportation tax for the use of public aviation facilities.

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