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Old 13th February 2012, 10:13   #61
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Default Re: Road Tax on Vehicles- Need to relook

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Originally Posted by fiat_tarun View Post
I pray that this happens. The Karnataka government will see the biggest loss if this comes into effect !

It would make cars cheaper ..
The article talks about setting 6% as the floor rate. This does not stop Karnataka from continuing with current high tax structure.
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Old 13th February 2012, 10:24   #62
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Default Re: Road Tax on Vehicles- Need to relook

Welcome move. This may take some time for implementation due to protest from some states, but an important first step indeed.

But what I don't get is this quote in that article.
Quote:
The committee said cars may be covered under a lumpsum tax across the country. "The floor rate of tax may be kept at 6% of sale price. However, flexibility may be available to the states to charge higher rate of tax in general or on specific models," the committee said.
What does that mean? So will a state be free to charge any amount they define as long as it is above 6%?
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Old 13th February 2012, 10:30   #63
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Default Re: Road Tax on Vehicles- Need to relook

Quote:
Originally Posted by shipnil View Post
The article talks about setting 6% as the floor rate. This does not stop Karnataka from continuing with current high tax structure.
Quote:
Originally Posted by deetjohn View Post
Welcome move. This may take some time for implementation due to protest from some states, but an important first step indeed.

But what I don't get is this quote in that article.


What does that mean? So will a state be free to charge any amount they define as long as it is above 6%?
Exactly.. on re-reading after Shipnil pointed it out, it doesn't make sense. The idea behind this is to prevent people from registering their cars in neighbouring states, and if states are still able to charge anything above 6%, the whole theory loses it's ground. KA will still charge 14-16%, for eg., people will still register their cars in KL / PY and run them in KA.
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Old 13th February 2012, 10:50   #64
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Default Re: Road Tax on Vehicles- Need to relook

I moved from Pondy / TN to BLR too, around 9 years back. I used to pay some 23 Rs for Petrol there and around perhaps about 14 Rs for Diesel.
On reaching BLR my monthly expenses went flying upwards on account of the higher cost of Fuel. I came here in my old TN Reg Gypsy and used it for about one and a half years before I bought a new vehicle here and was shot to bits when I saw the rate of road taxes in comparison to Pondy/ Madras. That didnt stop me and I went ahead. Today Im on the 3rd vehicle which I ve bought in Bangalore and each time I ve paid over the top in terms of taxes. The then SM Krishna govt had raised the lifetime tax rate on all vehicles on account of wanting to build better infrastructure for the city of Bangalore and all road users. Yes they did do a bit, for us, only to have it undone by their successors and further successors as we all know!
Now it is 2012 and the overall situation has only improved in small patches, and at the same time, deteriorated in huge patches!
If the base rate for tax is fixed at 6% and the states like KA are allowed to fix their own rates for vehicles, I guess the current 18% tax that I paid, might even rise by another 3-4% in order to line the coffers of the scum that runs the show!
Ridiculous in the extreme.
Bangalore and KA only survives as a desirable destination to go to or place to live in, on account of the weather and the supposedly cosmopolitan outlook. Both these are clearly on the decline - the weather on account of mass tree felling and rampant, un-regulated construction and cosmopolitanism is fast giving way to patently un-apologetic parochialism. No longer is it as desirable a place as it was, some years ago and it is only going downhill rather fast.
Bottomline: Shape up or Ship out!
The government of KA will not wake up - and if we are all hoping for that light at the end of the interminably long tunnel, then we should simply carry torches with us because all I can see ahead is darkness!
Quote:
Originally Posted by mgh View Post
My experience was a bit different when I moved from Pondy to Bangalore. They wanted change of registration within one year of moving to Bangalore but payment of the tax immediately. Pondy road tax had been very low, and the car was already five years old. So I did not bother to find out whether I could get any refund from Pondy.
What got my goat was the fact that the lifetime Karnataka Road Tax after discount for the car's age, was double the lifetime tax I had paid for the car originally at Pondy.
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Old 13th February 2012, 11:37   #65
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Default Re: Road Tax on Vehicles- Need to relook

Quote:
Originally Posted by shankar.balan View Post
I moved from Pondy / TN to BLR too, around 9 years back...

...because all I can see ahead is darkness!
+ 1 Shankar. These are exactly my feelings. The Karnataka Govt is in terminal decline and they are least bothered about the state. Less said about the roads the better.

Higher taxes are just a way for them to pay for i-Pads for MLA's for you know what

Last edited by suhaas307 : 18th February 2012 at 20:36. Reason: Shortened quoted post.Please avoid quoting large-entire posts as it may inconvenience small-screen and mobile users. Thanks :
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Old 13th February 2012, 11:38   #66
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Default Re: Road Tax on Vehicles- Need to relook

@shankar. You seem to be in constant rage over the tax issue. If the tax was only for betterment for Bengaluru roads, why do the whole of KA pay this rate? (to help our beloved fellow cosmopolitan citizens living in a bigger city)

The tax rate is uniform for people from outside as well as the ones who have been living here, so where's the parochialism?

The problem is no govt can undo revenue collection. Look at the amount of funds that are siphoned off by states blackmailing through regional parties? We cant talk about specific regions when it comes to corruption.

Lots of people still live in a pleasant Bengaluru but that makes drives longer (30 kms one way) to the hot beds of IT activity

I would be happy if the tax rates go down too. But trying to blame it on specific points using the outsider-insider angle is not right.
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Old 13th February 2012, 11:49   #67
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Quote:
Originally Posted by srishiva
@shankar. You seem to be in constant rage over the tax issue. If the tax was only for betterment for Bengaluru roads, why do the whole of KA pay this rate? (to help our beloved fellow cosmopolitan citizens living in a bigger city)

The tax rate is uniform for people from outside as well as the ones who have been living here, so where's the parochialism?

The problem is no govt can undo revenue collection. Look at the amount of funds that are siphoned off by states blackmailing through regional parties? We cant talk about specific regions when it comes to corruption.

Lots of people still live in a pleasant Bengaluru but that makes drives longer (30 kms one way) to the hot beds of IT activity

I would be happy if the tax rates go down too. But trying to blame it on specific points using the outsider-insider angle is not right.
There is no outsider insider angle at all. The only point is that if one pays road taxes which are for the maintenance and betterment of roads, then why on earth can't they get the roads upto scratch? Also, while BLR was used as the illustration, the point encompasses the whole of Karnataka. I have lived not only here, but in Coorg and Chikmagalur in the past and you should see the condition of the roads there. Even the most hard core off road enthusiast will blanch! Road taxes or any other taxes are happily paid up when purchasing a vehicle. Is it not reasonable for one to expect a basic return on that investment in the form of proper roads, street lighting and so on?
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Old 13th February 2012, 11:51   #68
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Quote:
Originally Posted by Marlon
Discussion in place for a Uniform Road tax of 6%

Panel suggests uniform 6% road tax - The Times of India
I also pray that it happens, one country, one road tax. Its stupid that people in bangalore have to pay so much more than people in delhi.

But then again, on further reading it says floor rate if tax to be 6% and that means min tax will be 6% and thus states can still demand if they want (which they always want).

Last edited by Mustang.101 : 13th February 2012 at 11:53.
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Old 13th February 2012, 12:00   #69
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Default Re: Road Tax on Vehicles- Need to relook

I hope this uniform all India road tax gets implemented fast.

Also they should remove the interstate barrier for movement of cars by unifying car registration numbers.

On Key roads Toll must be for minimum distance of 150 kms. All India valid unified Toll e-cards (cell phone recharge type) must also be considered.

High Road Tax on cars, Toll fee for road usage are glittering political plundering on common man. genuine unified All india valid regulation must come fast.
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Old 13th February 2012, 12:15   #70
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Default Re: Road Tax on Vehicles- Need to relook

I can understand that Pondy is a Union Territory, so overall taxes are low. However, Karnataka has the highest taxes on fuels in India and also Road Taxes, more than the surrounding states.
I think there should be a central law on maximum tax that a state can charge. If I am not mistaken, in the US there is a limit on the sales tax % that a state can charge.
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Old 13th February 2012, 12:26   #71
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Default Re: Road Tax on Vehicles- Need to relook

In Bangalore there is also lots of heavy commercial Crane/Tripper is also running flagging a NL registration. Dont know how and what RTO is doing about that. Even BBMP(Corporation) is using WB/TN... registration vehicle for many purpose. Is there any law on this ?
Probably a yearly taxing system can resolve many of us to a certain relieve. Now GOVT has started using a centralized system for all registered vehicle. So online payment also will be not at all difficult to do !
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Old 13th February 2012, 14:36   #72
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Default Re: Road Tax on Vehicles- Need to relook

Does it mean one can register a car/bike in one state and need not pay any road tax if he permanently moves to another state?
Its quite confusing about what do they want to achieve?
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Old 18th February 2012, 14:55   #73
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Default Re: Road Tax on Vehicles- Need to relook

The Government is considering making the road tax uniform all over India.
It is considering 6% as the road tax across the country.
It also plans to do away with permit fees for tourist vehicles and is trying to make the online tax collection system streamlined and efficient.
-------------

NEW DELHI: The Indian states should levy one-time road tax of 6% on the sale price on cars and two-wheelers, according to a suggestion from Centre. This recommendation is aimed at rationalisation of motor vehicle taxes across India.

It also recommended a system for online tax collection and proposed waiving permit fee for tourist vehicles. The overall total collection is just Rs 40 crore. Mr C P Joshi, Road Transport and Highways Minister, has said after a meeting of the Transport Development Council (TDC) that this will simplify the system and if required the issue is expected to be referred to the Empowered Group of Ministers (EGoM) of States for reaching a consensus and submitting report within two months.

Currently, the road taxes charged by states on cars and two-wheelers are in the range of 2-18%. Few of the states levy a lifelong road tax, annual levies prevail in others. Delhi charges a parking fee as part of tax. There are considerable variations in tax rates based on fuel, sale price of vehicle and engine capacity in many states.

Source : news.indiamart.com

mods: did not wish to start a new thread on the same.hence posted here. please feel free to edit or move to the ideal location.
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Old 18th February 2012, 20:23   #74
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Default Re: Road Tax on Vehicles- Need to relook

Hi guys,
A very good thread indeed and maybe government heard us and the recent proposal to fix the base level to 6%. My opinion is that 6% should not be the base level but a fixed level and it should be uniform across the country. If at all the Central Government is not keen on making 6% a fixed level at least they can fix a maximum level say 10% or so. When there is a minimum level being fixed then logically there should always be a maximum level also and 10% for a maximum level should be fine and the states will have some liberty and the level of liberty will be restricted. Hope Central Government is listening and will act.
Hope this happens before the next budget so that the Karnataka Government will not jack up the taxes beyond 20%. Hope our beloved Chief Minister has some common sense and he uses it and brings down the road tax to reasonable levels. In fact I visit the Vidhana Soudha quite often and I have seen so many MLAs driving in with luxury cars registered either in Pondy or some of the states which have considerably less road tax than in Karnataka. Atleast such MLAs should motivate the Government of Karnataka to bring down the road tax in the state. I can also specifically give the names of such MLAs but I prefer not to say.

Last edited by patil : 18th February 2012 at 20:29.
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Old 18th February 2012, 21:34   #75
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Default Re: Road Tax on Vehicles- Need to relook

If every state has the right to increase tax any amount over the 6 % minimum rate then there is absolutely no point in this ruling. All it does is increase the rate of places that are below the 6 % now.

My view is that the tax structure should be uniform across the country and there should be no difference where you bought your car and where you use it.
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