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Old 24th October 2013, 23:03   #46
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

I appreciate the move by Kerala Government. There has to be some mechanism to decongest the roads. If we start widening the roads and encourage vehicle purchase, we will end up in having only roads and nothing else on earth.

I have heard that a state government had started another novel initiative. They were asking the buyer to show/prove a parking place for the car s/he is buying. Only after that the buyer can buy the car.

Good initiative. Worth replicating.
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Old 25th October 2013, 00:15   #47
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

I dont see an issue if the tax is well utilized to make the roads better, of course it never happens.

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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.
just FYI - we aren't having a left government at the moment. It is a congress led government in Kerala.
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Old 25th October 2013, 00:17   #48
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Even if the rule/law is passed isn't this difficult to implement ?
Will Aadhaar or ration cards be used to track number of cars per family ? (Both are not mandatory for people to have). What if family members stay in different cities/states ? (only applicable for ones in the same state, kerala in this case ?)
If the system is based on the address, there may be genuinely multiple cars registered at the same address (example-past owner/tenant and present owner/tenant). Also, how difficult is it for someone to get a rental agreement for some other address and get it notarised ? The list is endless and finally if they introduce a silly certification system with attestation from some official it will most likely result in corruption and another scam

Last edited by NPV : 25th October 2013 at 00:21.
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Old 25th October 2013, 02:33   #49
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

I don't really understand this thinking of "If someone can afford two cars, he/she can definitely afford to shell out more tax". That's some kind of misplaced socialist thinking.

I am reminded of an old joke where a farmer is asked "If you had two houses, will you give away one for charity?" to which he answers, "Yes, definitely". Then he is asked "If you had two cars, will you give away one for charity?" to which he answers, "Yes, definitely". Then he is asked "If you had two cows, will you give away one for charity?" to which he answers "No." When asked why, he replies "I have two cows".

Just like benami land owners, I think this is just going to create a few benami car buyers. For eg: What if I provide the opportunity for my employee to buy a car through leased car route, and then use the car myself? Or provide loan to an employee to buy a car, which I then use myself? As with most tax laws, the real targets will probably find ways to evade this new increased tax and the middle class family who can't find any loopholes will be the only ones paying up.
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Old 25th October 2013, 07:23   #50
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

The rule may look positive on paper, but extremely difficult to implement. According to me, this serves more as a discussion topic to show that the government is doing something to reduce the congestion on the road. From what I understood, they have given enough loopholes to work around the rule – applicable only for husband and wife, not applicable if buying in parents’/children’ name etc.

I believe the most impacted will be those new middleclass workforce who may look at the option of upgrading from a motorbike to a small car. By this rule, the car will be the second purchase in the family.

In Kerala, there is never a dearth of new discussion topics
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Old 25th October 2013, 09:53   #51
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Mumbai too mooting some similar amendments!
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Old 25th October 2013, 10:23   #52
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Here's one scenario:

1. Five major junctions along the highway in Cochin with no flyover, wide roads, blocked free left turns
2. Three major malls operating along this stretch and 3 more big names opening in couple of years.
3. Highways are filled with potholes and major accidents witnessed almost everyday and I get to see atleast 2 small pile up every week.
4. All major junctions are literally off road tracks.

This important bypass stretch is a chaos every evening and traffic can be seen for kms.

Now govt will have to seriously start some actions like flyovers, wide roads etc which is in paper for the last 10 years but no action being taken. So the next best bet would be introduce this tax scheme for second vehicles hoping that it would reduce the congestion. Well, to my belief there are many loopholes in place and will definitely take some time and protests to get this in place but I seriously dont think this will drastically reduce the number of vehicles. If they are willing to sell lakhs for fancy numbers and cars, an extra tax amount will be negligible for them.

Last edited by naveen.raju : 25th October 2013 at 10:48.
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Old 25th October 2013, 10:45   #53
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

If I am not wrong similar tax structure is imposed in Andhra Pradesh as well, please correct me if not true.
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Old 25th October 2013, 11:13   #54
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Quote:
Originally Posted by naveen.raju View Post
1. Five major junctions along the highway in Cochin with no flyover, wide roads, blocked free left turns
2. Three major malls operating along this stretch and 3 more big names opening in couple of years.
Add to that Kochi Metro construction work, which will affect two of the busiest junctions along this route, and the picture looks very bleak indeed.
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Old 25th October 2013, 11:39   #55
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Looking at the road conditions and vehicle population in Kerala, it is a welcome move. But I am sure the proposal has come up with the aim to generate more revenue.

Another aspect is, like other members said it is very easy to state on paper but very difficult to implement. I think (if at all this rule is going to be implemented) there will be another Government in place. So they will take their own time.

By the way what is the point in criticizing the move as typical leftist mentality?
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Old 25th October 2013, 11:53   #56
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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 ashwin489 View Post
Also, men that are legally allowed to maintain more than 1 wife, what about their plight? Are they allowed 1 car/wife or 1 car/family.
You brought out a very valid point bro. These guys simply throw decisions on people without any proper due diligence or planning.

In Kerala, all these measures are taken to address a very immediate need which people are suffering since ages and now at its core! When would the effect become visible in streets? Do they term this as a short term plan for addressing traffic chaos?

On a lighter note, will we start restricting Team-BHP garage to only one car per member?
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Old 25th October 2013, 12:15   #57
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

On paper this might look like a good move to several people. But its plain stupidity.

Why should the common man be burdened with more and more road tax when there is practically no road at all in Kerala? Kerala roads are among the worst in India I feel In other countries when levying high tax or additional vehicle tax Govt provides class leading facilities.

Instead of being accountable and providing us with decent roads, facilities, good public transport and safety they think up of these wild schemes to burden the common man. Even the Hon. High court of Kerala recently observed and noted the pathetic state of Roads in Kerala and wondered how the huge amount of road tax collected is spent.

I could understand paying more tax if you own a 3 series and and then buy a 5 series or E class on top of it. But what about the average hardworking guy who owns a swift and an Innova or an Alto and a Honda city?

I really hope negative voting proposed by the Supreme Court comes for the upcoming elections.
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Old 25th October 2013, 12:23   #58
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Quote:
Originally Posted by microaubin View Post
I could understand paying more tax if you own a 3 series and and then buy a 5 series or E class on top of it. But what about the average hardworking guy who owns a swift and an Innova or an Alto and a Honda city?
If the 3 series takes no more space on the road than an Innova or a City, why should he be made to pay more? Why does everyone hate the rich? Everybody has this attitude that "tax everyone richer than me".

If the govt wants to collect more taxes, they should be encouraging people to spend more by lowering taxes, not discourage them by raising taxes.

Last edited by ecosport : 25th October 2013 at 12:25.
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Old 25th October 2013, 12:33   #59
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

Quote:
Originally Posted by ecosport View Post
If the 3 series takes no more space on the road than an Innova or a City, why should he be made to pay more? Why does everyone hate the rich? Everybody has this attitude that "tax everyone richer than me".

If the govt wants to collect more taxes, they should be encouraging people to spend more by lowering taxes, not discourage them by raising taxes.
Totally agree with you. Anyway "tax everyone richer than me" was not at all what I meant. Just that personally I don't know anybody who has multiple luxury cars!! Anyway currently luxury cars are taxed at 15%, so maybe its good news for prospective luxury car buyers!!
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Old 25th October 2013, 12:38   #60
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Default Re: Kerala to impose additional tax on the 2nd car of a family!

There are two perspectives to come in mind:
a. Its a proxy to increase the road tax without seeming to do so. Maybe?
b. The government has to do something about the mess on our roads - land is not infinite, and the government should provide some infrastructure to reduce the demand. But it has to be an integrated solution.

My friends in SFO don't own cars because parking costs a bomb, and apartment parking itself costs $300/month. So they use stuff like zipcar when required. Creating half-baked laws is hardly the solution,
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