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LETTER ON RATIONALIZATION OF PRIVATE MOTOR VEHICLE TAXES
Common Cause in a representation before the Union Minister of Road Transport and Highways, Mr. Nitin Gadkari, has urged him to expedite the implementation of one country, one registration, one life time tax policy for private vehicles as recommended at the meeting of the Group of Ministers, held in Thiruvananthpuram, Kerala on November 8, 2016. At the meeting it had been suggested that there should be no subsequent tax on re-registration if the private vehicles more than three years old having the original cost up to ₹ 10 lakh is relocated from one state to another. Another committee set up under UPA had made similar suggestions.
We have mentioned in our letter that on purchase of a vehicle, a life time tax is charged by the registering authority for registration for a period of 15 years. When the vehicle is moved from one state to another, the owner is supposed to pay a life time tax to the new state. In this way he is being forced to pay the life time tax twice or more for a single vehicle. There are differences in the road taxation structure of the various states, but it is inconceivable and illogical that lifetime road tax be paid twice or more for the same vehicle.
Further, as per section 47 of MVL Act one is allowed to drive her/his car with the old registration no. in new state only up to 12 months, after which s/he has to pay road tax in the new state for getting the car registered, as mentioned above. It is suggested that the Motor Vehicles Act be revisited /amended and in the meantime, vehicle owners be allowed to change their registration number without having to pay life time tax all over again. The new state can always charge a very nominal fee for changing the registration.
We have urged the Union Minister to consider these points and others mentioned in the representation. It has also been reported in the media that the present government is in the process of bringing Life Time Road Tax Policy/uniformity in the taxes levied on the motor vehicles across the country. We requested the Minister to provide us a timeline for the same.
Image Source: https://thelogicalindian.com/story-feed/awareness/1-year-ago-drive-without-borders-defeated-karnataka-law-that-imposed-lifetime-tax-on-out-of-state-vehicles/