Drive Without Borders:One Nation-One Road Tax

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The first bill related to road tax came into existence in 1914, which was replaced by MV Act 1939. A working group was constituted in 1984 to overhaul the process and a new act was passed by both houses of parliament on oct 14, 1988 and is therefore referred  as CMV 1988.

Karnataka went a step further and amended the Motor vehicle taxation (known as Karnataka Motor Vehicles Taxation (Amendment) Act 2014. This act says that ‘’any vehicle plying continuously in Karnataka for more than 30 days needs to pay the Hefty Life Time Tax levied by the Government Of Karnataka’’  which is against the CMV 1988 which states that any motor vehicle plying continuously in other state needs to be registered in 12 months.

The crackdown started by Karnataka officials while checking Non-Karnataka cars has created a wave of terror amongst people coming from other states. We have also filed a petition in The Honorable High Court of Karnataka against the recent MV Taxation Amendment and got a stay order on this MV Amendment.

Telangana Road Transport Authority has passed a similar law which dictates aa Non/AP-TS vehicle to pay LTT in 30 days Telangana RTA been harassing travelers and have seized countless NonAP/TS vehicles. A case was filed against the Telangana RTO and a Judgement was pronounced by the Hyderabad High Court against Telangana RTO. The court order says Telangana RTO does not have any authority to collect LTT from out of state vehicles as they do not have any amendment to this effect and Section 47 of CMV 1988 also talks about changing of registration after 12 months and not LTT. 

Gurgaon traffic department passed the same amendment in November 2014 and wanted Non-Haryana registered cars to register their cars within one month of arrival.

 Kerala state has followed suit in March 2015 and wants Non-Kerala state vehicles to pay yearly road tax upon one month of arrival.

 These state amendments are against the freedom of movement which our constitution guarantees and are also against the spirit of the constitution's provisions and federal principles. 

Slowly, other states are trying to follow Karnataka, it is very important that the central govt. brings the unified road tax law.

Our demands are:

1. Uniform road tax for cars, taxis and two-wheeler all over India.

2. Abolish the Lifetime tax and start the taxing period from 1 to 15 yrs according to the convenience of people.

3. To keep a unified online database for vehicles registered all over India. If a vehicle registered at the RTO office of one state get registered in another state after moving, that makes the automobile no. available in 2 states, that should initiate the refund process on its own.

4. To allow "national permits" for passenger vehicles on the lines of goods vehicles, which will facilitate their hassle-free movement across states and avoid harassment by local transport officials.

5. To not levy tax on temporary inter-state movement of vehicles for three months.This means if one has bought a car in Delhi and is taking to Himachal Pradesh, where it would be registered, the customer can get a three-month relief from paying road tax. At present, this is for only one month

6.To revoke amendment made by Karnataka Government on 28th Feb 2014 to the Motor vehicle taxation (known as Karnataka Motor Vehicles Taxation (Amendment) Act 2014.This act says that ‘’Any vehicle plying continuously in Karnataka for more than 30 days needs to pay the Hefty Life Time Tax levied by the Government Of Karnataka’’ which is against The CMV rules which states that any motor vehicle plying continuously in other state needs to be registered in 11 months.

Benefits:

1.Uniform road tax will discourage buyers to get their vehicles other than their home states that have the comparatively lower rate of one-time road tax. The other benefit of the uniform road tax would be that people would prefer to buy vehicles from showrooms located in their home states and get them registered there as there would no incentive to find an outlet outside.

2.Vehicle owners moving from one state to another will not have to go through harassment and the refund will be easier if unified online database for vehicles registered will be made.

 We request you to implement One Nation-One Road Tax policy without any further delay which will help us to DRIVE WITHOUT BORDERS. 

 

 



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