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Old 24th October 2013, 13:49   #16
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Angry re: Kerala to impose additional tax on the 2nd car of a family!

Let them charge 6% or 60%, but where is all the money going, we wonder travelling through Kerala's roads.

And any taxation should not be exploitative and should benefit the taxpayer, otherwise there is every chance that such moronic proposals are struck down in the courts.
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Old 24th October 2013, 13:54   #17
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Default re: Kerala to impose additional tax on the 2nd car of a family!

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Originally Posted by zenren View Post
Since all cars cost more than 50k, providing owner's PAN to RTO could be mandatory and should be good enough I guess.
That's true! But how do you track your family details with a PAN?

Moreover, the PAN is now required only as a compliance measure from the Income Tax perspective, apart from its acceptance as a photo ID proof.

The whole discussion is about levy of additional tax by the state transport authority which is completely out of the purview of PAN.

Aadhaar could be a possible solution, but it is still at its infancy stage.

At best they could prevent a single person from buying a second car in his name using the PAN.

If only the family tracking system were successful, it would have been extended to the land ceiling Act long back. There are plenty of practical difficulties in its effective implementation.

Last edited by Warwithwheels : 24th October 2013 at 13:55.
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Old 24th October 2013, 14:01   #18
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Default re: Kerala to impose additional tax on the 2nd car of a family!

Just thought of a new angle to this 'spouse clause' - it is actually going to lead to a lot of trouble in context of the anti-dowry laws.

It could indirectly give a justification for any groom/his family to ask the bride/her family to buy a car in her name just before the marriage so as to avail the lower tax rates.

Last edited by zenren : 24th October 2013 at 14:03.
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Old 24th October 2013, 14:55   #19
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

This is laughable. Increasing the road tax slab is one thing, but additional tax on a 2nd car? Sheer idiocy.

What next, additional tax for having a 2nd child?
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Old 24th October 2013, 15:24   #20
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

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Originally Posted by MaserQ View Post
What next, additional tax for having a 2nd child?
Err, not on 2nd, but for sure on the 3rd child & a hefty one at that.

Most problems are arising because of the inflated population & no Government, either Central or State, seems to be doing anything about it.

Sorry to go OT
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Old 24th October 2013, 15:57   #21
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

The proposed rule is applicable only for new registrations. It is applicable to couples only. Vehicles bought by children or parents are not included.

I cannot reveal the source of info, but I am told by a legal adviser to the government that chances are, the rule would be implemented for the 3rd vehicle only and not second, though that's what the minister said. This is because two individuals form a couple, and the proposed rule curtails the freedom and rights of one of them to own private property without paying a penalty citing that the other one owns such property. This is both unconstitutional and violation of basic rights.

Secondly, it has also been pointed out that in the unfortunate but common scenario where a couple file for a divorce, the husband/wife of the plaintiff cannot own a vehicle without paying additional tax till the marriage is declared dissolute by the court!

Thirdly, the proposed rule, which is basically a tax rule and not a part of the criminal code, creates an uneven playground as it treats a couple who owns 2 meekly mopeds and another who owns two BMWs in the same manner.

@sgiitk, Kerala is currently not under the left rule. It is ruled by the UDF, "led" by the Indian National Congress. Aryadan Muhammad is a congress minister.

Last edited by sandeepmdas : 24th October 2013 at 16:05.
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Old 24th October 2013, 16:10   #22
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

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Originally Posted by kutts View Post
The Kerala Govt has put forward in the Transport Development Council meeting held by the Central Govt that it will start imposing additional tax on the second car bought by a family.
I thought the communist party is in the opposition??
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Old 24th October 2013, 16:18   #23
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

What's wrong in this move? When one can afford a 2nd car, how much burden would be the tax component.

In fact they should also add another component if they park that on the road! Today roads are overflowing with vehicles and lack of parking space resulting in a logistical nightmare. This initiative should be across the country and not limited to a few states.
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Old 24th October 2013, 16:26   #24
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

And here I am wondering why this thread has a thumbs down icon.

I think this is excellent move by the government, which will ensure people hold on to their cars and largely refrain from impulse buys in the CAR season each year.

I strongly feel this should be the norm across India.
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Old 24th October 2013, 16:37   #25
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

2% additional tax is peanuts especially for somebody who can afford a second car.

BUT, I still fail to find the rationale.

- Are they just trying to achieve more tax revenues? If yes, then sales could actually go down thus affecting tax collection. So what gain are we talking about here?

- Is it to reduce congestion on roads? Then it's funny. That I have two cars does not mean that I drive both together, right? And if the spouse too needs to travel, if not on the car, he/she would hail a cab. How does it solve congestion?

This move is a result of the typical left mindset as sgiitk mentioned above. They think that taxing the rich is the ultimate way to solve all problems. In reality, they compound it.

In Kerala, it is not the communist party, but every single one including the Congress and the BJP has a left mindset.

Last edited by ecosport : 24th October 2013 at 16:42.
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Old 24th October 2013, 16:47   #26
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

How are they going to figure out who is married to whom? No such registry exists and these days women prefer to keep their maiden name so they can't even search anything by the last name.
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Old 24th October 2013, 17:05   #27
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Quote:
Originally Posted by sandeepmdas View Post
I cannot reveal the source of info, but I am told by a legal adviser to the government that chances are, the rule would be implemented for the 3rd vehicle only and not second, though that's what the minister said.
That would translate to 2nd car in anyone's name with no need of bringing in the spouse into the equation. It would make things much simpler to implement.

Quote:
Thirdly, the proposed rule, which is basically a tax rule and not a part of the criminal code, creates an uneven playground as it treats a couple who owns 2 meekly mopeds and another who owns two BMWs in the same manner.
Last I checked, moped didn't fit into the definition of a car.

I assume you are speaking about the case where there is uniform tax rate for all cars. How is it different from the existing rule? Isn't it the same issue even with the first car where an individual buying a Nano and another buying a BMW are treated in the same manner?

In Kerala, tax rates vary from 6-15% depending on showroom price. So Nano gets 6% tax and BMW gets 15% tax already. So they are not treated in the same manner. (Thanks Starrysky and swiftnfurious for the tax slab info)


Quote:
Originally Posted by Sheel View Post
Err, not on 2nd, but for sure on the 3rd child & a hefty one at that.

Most problems are arising because of the inflated population & no Government, either Central or State, seems to be doing anything about it.
Its a catch-22 situation. Any step against inflated population invites the wrath of those who don't follow family planning. Unfortunately, they have more votes (thanks to non-compliance) in their household than a family who adhered to family planning and no political party would want to lose those votes! If cars had voting rights, we wouldn't have seen this

Last edited by zenren : 24th October 2013 at 17:13.
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Old 24th October 2013, 17:11   #28
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

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Originally Posted by sgiitk View Post
They must have gone Bonkers. Working couples, or major children; how do they accommodate them? Typical left mindset.
The mindset is absolutely corrosive, steal what you can't get is considered absolutely moral for these clowns. I got flamed for saying that speed limit enforcement in Kerala is just a socialist hangover, now when the socialist bear hug expands itself into every aspect of life, wonder what the explanation will be. As good intentions go, this must be the fastest path to hell, have a company and register 10 cars for personal use in the company name - no problem, have 2 scooters and and 800? then pay up 15% extra on the value of the car for polluting the environment. Environmental activism is another past time of the busybodies in Kerala. Only if they could change focus and create wealth instead of dreaming up ways to steal from others.


PS :For those supporting a 50kmph speed limit as sane, the enforcer(traffic top cop) was recently shown on TV going at nearly double the allowed speed after blocking the roads to normal traffic. Transport authorities have never bothered with stricter licensing norms, as long as that continues, overspeed will be a normal justification for any kind of accident.
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Old 24th October 2013, 17:16   #29
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

This law, if at all implemented, would be challenged left,right and center for violating a truckload of basic constitutional rights.

@sgiitk - Sir - Kerala is being ruled by Congress led UDF.

IMO all Indian political parties are in contest of who can form the most bizarre laws in the country!
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Old 24th October 2013, 17:33   #30
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

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Originally Posted by avira_tk View Post
have a company and register 10 cars for personal use in the company name - no problem, have 2 scooters and and 800? then pay up 15% extra on the value of the car for polluting the environment.
Which state gives lower tax rates for company owned vehicles? At least in AP, cars under company lease are taxed at the higher rate, not at lower rate.

Quote:
Transport authorities have never bothered with stricter licensing norms, as long as that continues, overspeed will be a normal justification for any kind of accident.
They have, but didn't really succeed. I still remember the time when Kerala RTO introduced 'H' for driving tests in addition to road test. Most people who were not proficient enough ended up going to neighboring states like KA and TN to get the license. End result? Even worse drivers started driving on our roads as agents were easily available and the road tests for license in KA were much more liberal.

Unless things get implemented at national level where people are left without a choice, they'll always figure out a way to bypass a strict rule put forward by a few states.
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