Stop re-registration and road tax re-payment in interstate transfer of vehicles

Stop re-registration and road tax re-payment in interstate transfer of vehicles

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A person buys a vehicle in a state, pays road tax and gets the registration done. After 1-2 years if he has to move to another state permanently for 2-3 years, he has to take NOC from RTO of previously registered state, pay road tax in the new state and re-register the vehicle in the new state.

But why this all is required? Why cannot road tax paid in one state be valid during interstate transfers? Why is re-registration of a vehicle required in the new state?

India is a country where it is said there is no discrimination among different religions and states. Recently, implemented GST also boasts as "One nation, One tax", then why these hassles have been created for moving your vehicle from one state to other?

On paper, the rules are quite simple. You need a no-objection certificate (NOC) from the regional transport office where your vehicle was originally registered. This is the first step in the process of re-registering your vehicle in your new State of residence. With this, you have to go to the RTO concerned in the State you have moved to, fill up forms, hand over the NOC, furnish proof of address, attach a copy of the vehicle’s insurance, that the vehicle meets pollution norms and, voila the vehicle will be re-registered within a specified time period.

You can even get a refund on the residual value of the lifetime road tax you paid when you bought your vehicle, after showing proof that you have moved to a new State and completed the formalities for re-registering it there.

But, the hassles involved in doing all this puts you at the mercy of middlemen and touts, who charge quite a hefty fee, unofficially that too.

Honourable transport minister Mr. Nitin Gadkari and honorable finance minister Mr. Arun Jaitley, please stop this re-registration of vehicles during interstate movement/transfers of people. It is very difficult for a common man to spend thousands on fees and commission of middlemen at a new place.


Benefits from the action

1. Supports the idea of "One nation, one tax" inline with GST

2. Supports the campaign of Digital India

3. No corruption by traffic police to extort thousands from a common man

4. Hassle free movement of vehicles during interstate transfers

5. Reduce the cases of vehicle thefts


How it can be implemented

1. Keep road tax same for all states and under purview of GST

2. The vehicles' registration to be linked with Aadhaar Card. It will reduce the cases of theft also

3. Road tax payment should be through an online portal.

4. Once a person changes the state, the road tax remained (on the basis of life of 15 years of vehicle), can be transferred to the new state - Just like Provident Fund online transfer happens

5. The person can also update the new address during transfer of the road tax

6. Print of transfer of the road tax receipt can be used to show to traffic police cops as a proof of paying road tax