The Hindu : Andhra Pradesh News : Excess tax on every subsequent vehicle acquired

Online edition of India's National Newspaper
Saturday, Jan 05, 2008
ePaper

Andhra Pradesh

Andhra Pradesh

Excess tax on every subsequent vehicle acquired

Staff Reporter

‘Software upgradation will take about two months’

HYDERABAD: The Transport Department plans to mop up additional revenue of about Rs. 3 crore per annum with its latest order on enhancement of the Life Tax on the second vehicle purchased by a vehicle owner. The enhancement of life tax to 12 per cent from the earlier 9 per cent, on the cost of the second vehicle has already come into effect from January 2.

However, with the software that can detect multiple registrations on a single name not being in place, the Transport Department will allow registrations as usual after collecting the 9 per cent Life Tax on cost of the vehicle. When the software is in place, the department would send notices to those having two vehicles registered on their names for payment of the additional three per cent tax.

Officials explained that the software upgradation could take about two months. Presently, all operations of the Transport Department are computerised and the vast database can be checked by the new software for names against which the second vehicle is registered after January 2. In effect, the software will throw up the names of vehicle owners who bought the second vehicle after January 2 and notices for payment of the differential amount would be served on them.

Traffic congestion

Explaining the new tax system, officials said if an owner of a motorcycle bought a car, he would have to pay the additional tax on the car price and vice versa. However, if the second vehicle is bought on different names within a family, the enhance tax would not be applicable.

The more-tax-on-second-vehicle will also be applicable to organisations, institutions, societies and companies, which buy vehicles for employees. According to CLN Gandhi, Joint Transport Commissioner, Maharashtra was already following this model of charging more from the companies which buy vehicles for their employees. The argument behind this move is that companies would either way claim depreciation of costs on the vehicles besides getting discounts from the automobile dealers.

Official statistics indicate that there are 42,882 non-transport vehicles owned by companies and organisations and every year 6,000 new vehicles are bought by them on an average. In the State capital, nearly 600 vehicles get registered every day and the cascading effect of the increasing vehicle registration is that there is a phenomenal increase in pollution levels and traffic congestion.

Through its latest order, the Government has also abolished the system of quarterly payment of tax for motorcars worth less than Rs. 3.5 lakh, being operated as taxis. The quarterly tax was of Rs. 330 and now it would be 12 per cent of the cost price of the vehicle.

The professed aim of the Transport Department to discourage multiple ownership of vehicles may not fructify, given the propensity of vehicle owners to spend fabulous amounts just to get a fancy registration number. However, the latest move is sure to fill up the coffers.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh