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Old 5th July 2017, 12:26   #91
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Default Re: Road Tax on Vehicles- Need to relook

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Not to hijack the thread, As we are anyway paying Tolls for highways, I always feel unhappy to pay hefty Life time Road tax which runs to several lakhs of rupees to a state, because it is only good for driving inside city or the local area where the car is regularly used (in towns or villages). The distance usually does not exceed more than 50 kms to 100 kms for majority of car owners, as you may come across a toll in between when you go far.
I seriously don't think the lakhs of rupees paid in Lifetime Road Tax (that too by every single car owner) justify the maintenance of roads. Of course, the reality is poor maintenance which is a different topic. We are paying other taxes as well. Where is all the money going?
Exactly my thought! When we have already paid the life time road tax for a vehicle, then why again are we required to pay toll on the highways? Either abolish the road tax and collect Toll for all the roads or charge life time road tax and abolish all the tolls
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Old 5th July 2017, 14:14   #92
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Default Re: Lifetime Road Tax Payment Registration!

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Originally Posted by ravib View Post
I seriously don't think the lakhs of rupees paid in Lifetime Road Tax (that too by every single car owner) justify the maintenance of roads. Of course, the reality is poor maintenance which is a different topic. We are paying other taxes as well. Where is all the money going?

-Ravi
On your point, does anyone know whether the revenue from Road taxes are used only on construction and maintenance of roadways and not diverted to other departments to address deficits?

If the road taxes go in to central/state budget pools and then allocated back to Highways/City departments, I can see that some of the money getting diverted.
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Old 5th July 2017, 14:28   #93
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Default Re: Lifetime Road Tax Payment Registration!

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Originally Posted by Yieldway17 View Post
On your point, does anyone know whether the revenue from Road taxes are used only on construction and maintenance of roadways and not diverted to other departments to address deficits?

If the road taxes go in to central/state budget pools and then allocated back to Highways/City departments, I can see that some of the money getting diverted.
I hear what you are saying. Yes, you are right. We are not 100% sure if all the money paid as Lifetime Road Tax is only used only for road maintenance/construction in reality. However, it should be accounted for this purpose atleast because the consumer is asked to pay for it and not in other names/other tax. This is true for Tolls and highway maintenance as well. I see lack of accountability and effective implementation.

-Ravi
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Old 5th July 2017, 14:52   #94
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Default Re: Road Tax on Vehicles- Need to relook

Time was when we paid road tax quarterly/bi-annually or annually, and it was quite reasonable. The only hitch was that it had to be paid regularly, but then you paid road tax where ever you were.

All that changed when some brilliant mind in the government decided to charge a "One Time" road tax. From a simple road tax, this one time tax has evolved to a big financial income, as now the taxes are not based on the vehicle size/use etc but on its price.

In my opinion there is no rationale in charging 30K for a car costing 5L at one end, while charging 5L at the other end, for a car similar in road presence but costing 2Cr. This is simply another money making scheme.

At least in case of Toll Tax, the toll is based on the vehicle size and usage and not on its cost, and they are collecting the toll for a limited period, ostensibly till they recover the total costs.

Last edited by Aroy : 5th July 2017 at 14:54.
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Old 5th July 2017, 15:56   #95
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Default Re: Road Tax on Vehicles- Need to relook

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Originally Posted by Aroy View Post
At least in case of Toll Tax, the toll is based on the vehicle size and usage and not on its cost, and they are collecting the toll for a limited period, ostensibly till they recover the total costs.
don't give them ideas. Before you know they would start charging toll also based on the value of cars.
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Old 7th July 2017, 10:18   #96
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Default Re: Road Tax on Vehicles- Need to relook

Our Netas and babus do not understand the import of the GST. Now trying to just tweak again. India can only be really one, when we have flat taxation. See TN trying to impose additional tax on Cinema Tickets, MH trying out its hand on levy on Road Tax, long queues at toll barriers (commercial) on DL - HR border. Only I hear that most checkpoints for ST/TT are gone. I am sure this will knock a day or more from the DL-TN truck transit time.
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Old 7th July 2017, 11:23   #97
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Well what can one expect when the governments freely engage in doling out populist schemes? TN is one of the states where we already pay hefty road tax. So less scope to increase. The next is entertainment tax because they just cannot increase public transport price at any cost nor can they stop dishing out freebies. We still have farmer relief left in TN.
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Old 8th July 2017, 10:03   #98
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@arunramaswamy; Our netas and babus are still living in the Keynesian gae, while we are now a Hayekian ie Monetarist economy. They will have to learn at some point and soon. I am sure GST will remove a lot of slack and accelerate the process.
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