Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 28th August 2006, 11:19   #1
Senior - BHPian
 
Join Date: Jul 2006
Location: Bombay
Posts: 1,007
Thanked: 229 Times
Default Double taxes for Mumbaikars?

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.
sandeep108 is offline   Reply With Quote
Old 28th August 2006, 22:02   #2
BHPian
 
Join Date: Jul 2006
Location: Mumbai
Posts: 57
Thanked: 0 Times
Default

Quote:
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?
ssl2uv108 is offline   Reply With Quote
Old 29th August 2006, 12:01   #3
Senior - BHPian
 
Join Date: Jul 2006
Location: Bombay
Posts: 1,007
Thanked: 229 Times
Default

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?

Last edited by sandeep108 : 29th August 2006 at 12:02.
sandeep108 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mumbaikars : How are your electricity bills treating you? GTO Shifting gears 24 21st May 2017 17:04
Navi Mumbaikars any plan for this Christmas? gaddiwale The Team-BHP Meet Section 27 21st December 2008 10:38
Need help from TBhp - Mumbaikars madbullram Shifting gears 1 22nd July 2008 15:10
Mumbaikars Please HELP s.prashanth Route / Travel Queries 13 16th October 2006 13:09
Hope all's well with you Mumbaikars pdev29 Shifting gears 109 14th July 2006 18:56


All times are GMT +5.5. The time now is 05:33.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks