Double taxes for Mumbaikars?

[sandeep108]

In the recent issue of potholes, the BMC admitted that they do not receive a single paisa of revenue from the State Govt. collected as road tax. If so, why should we Mumbaikars be taxed twice? We are already paying octroi at 5.5% to BMC and another 7% as road tax.

If the road tax being collected by the State Govt. is not going to the local authority responsible for maintaining the roads, then is this right? Either the state govt. should give the road tax to the BMC (for cars registered in its jurisdiction) or reduce it to a nominal amount for record and other purposes.

[ssl2uv108]

Originally Posted by sandeep108

... why should we Mumbaikars be taxed twice? We are already paying octroi at 5.5% to BMC and another 7% as road tax.

even i have been wondering about this... how much really do v pay to the govt?

Can someone break it down please into :
tax - road, fuel ?
cess - fuel ?
what else?

[sandeep108]

I roughly estimate that indirect taxes on motor cars (and maybe other vehicles somewhat less) would be around 60%. Excise 24%+2%, VAT 12.5%, Octroi 5.5%, Road tax - 7% for personal, 21% for corporate. And this is all cascading so actually you pay VAT on excise! and so on. Further you pay 12.24%/12.5% as service tax/VAT on any work at A S S (hmmm... how apt).

Combined central and state taxes/cess on fuels is certainly more than 50%. It is actually greatly beneficial to both Central (import duties are ad valorem) and State revenue (taxes are also ad valorem) that oil prices are so high. They are currently praying for oil to cross $100 per barrel so that they can increase petrol to 75, diesel to 65, etc.

This will greatly result in much higher revenue and adulteration so that both their white and black pockets are filled even further, way beyond the brim.

Actually excise component has been coming down since last 10 years. I recollect on my OHC excise was 40%, not sure now whether it is 24 or 32. Again for small cars from this year it has been reduced.

From all these taxes, currently it is only Central Govt. is spending something on roads through NHAI. None of the state govts. have any money left to spend on roads, in spite of such heavy taxation.

My question to the Honourable High Court is: why only direct that potholes in Mumbai to be filled up? Does not the rest of the state deserve better roads where one does not break one's spine?