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-   -   Government proposes annual renewal of driver's license & tax on possession of 2nd car (https://www.team-bhp.com/forum/indian-car-scene/123426-government-proposes-annual-renewal-drivers-license-tax-possession-2nd-car.html)

The transport division of the union urban development ministry is swarmed by a plethora of proposals that can adversely affect the consumers and car manufacturers, alike. One such proposal is to impose tax on every second car owned by an individual, who will be required to pay Value Added Tax (VAT) and a cess over as well as above road tax for the same. The proposed suggestions can be a major let down for the car manufacturing companies in metropolitans city like Delhi and Mumbai. In such cities, where 30-40 lacs cars glide over the roads, would be highly impacted by the new policies of the state government.

The government feels that the new proposal will assist it in attaining the long term goal of reducing the use of private vehicles. This objective of the centre is targeted at reducing the congestion in the city and promoting the usage of public transportation, owing to the relative increase in the traffic.

Another regulation being laid down by the government is the mandatory renewal of the driving license every year. This could further harm the auto industry if the government lays a consensus over this proposal. As of now, driving licenses comes with tenure of 10-20 years and after the mentioned period the license is supposed to be renewed. To successfully enforce the new policy, government is required to ensure the strict enforcement of traffic regulations. Administration is also planning to generate more revenues by means of the license fee. The idea has been borrowed from Brazil's infrastructure where the funds generated by the license fee are utilised to perk up the transportation infrastructure in the urban towns.

Source: Government proposes annual renewal of driver's license and tax on possession of second car | CarTrade.com

Why can't our Government pick up good things from Brazil, like running the cars on Ethanol, Beautiful highways crisscrossing the country, mandatory fire extinguisher in the cars, etc, etc., Instead the Indian Government has picked up what they can do with the annual license renewal fees. :Frustrati

Another set of half baked ideas to cripple the already struggling industry.

Yearly renewal of driving license will do nothing good, except for filling the govt coffers and the pockets of corrupt RTO officials.

Adding a cess for owning a second car will be a big blow for the industry in general. But for sure there will be alternatives to get around to paying this additional tax. People will just registering cars in theirs spouse's name or parent's name just to avoid the additional cess.

I've the same comments as on other threads discussing governments moves to manage congestion on roads --- these laws don't make sense unless they go hand in hand with better public transport! Am not against the law but am dead against how thoughtless and lopsided the implementation is.
Am all for these laws cause thats how the west manages errant drivers and congestion. But when they put someone off the road, they don't force him to walk! People have alternative in the form of great public transport.
Am in sweden, a country with population of 90lakhs. And let me tell you that i will reach any place thats inhabited as a proper settlement without ever having to rent a car. Thats how good the public transport is! :D

This is utter rubbish by the stupid and highly corrupt congress UPA government. They talk about long term goal of reducing private transport and people using public transport.. Where is there proper public transport to be used?? In Mumbai where I live, let the stupid ministers travel by local trains during rains. Maybe then some sense shall come into their heads. This is just another motive to make money. This stupid idea by the government shall die its own death soon.

I think the Government of India and the people who staff it, require a complete revamp.
This can only happen if clean blokes join. But the trouble is that they cannot remain clean in an inherently corrupt, ruined environment.
Whats the solution?
Another fight for Independence? This time against the rule of oppression being practiced by our own elected representatives?

I am not very optimistic that things will change in a hurry. They won't change, at least until we all gain a greater sense of National Pride and till our every collective word, deed and action is geared and in line with such pride.

Folks, I dont mean to spoil the anti-government rant here, but we do need to face the facts.
1. Population in India is out of control, we are one of the most rapidly growing nations in terms of birth rate, while the death rate is declining. While this is a good thing, we need to be aware of the fact that natural resources are finite.
2. We are adding vehicles at a pace that infrastructure cannot keep up with.
3. We have only limited space that is available to expand cities and roads.

I am here in Australia and we pay registration for cars every year, $600 a year for a car that costs $1000 or $50000. However the more expensive cars do have luxury car tax as well added onto their bill. The point am trying to make is that even here we are conscious of the number of vehicles we are adding into our cities.

Shouldnt India be even more careful?

You are joking right?
The govt can’t implement any policy effectively, there is no transparency, what is this rule (proposed) going to achieve?
As already pointed out it will only benefit a certain lot of people (read government staff).
There is no point in bringing new policies & rules which are going to be ineffective due to the inability to enforce them. It would do a world of good to enforce existing rules before we have more ridiculous rules.
I drive because of the inefficiency of public transport and not because I love the traffic jams, pot holed roads & idiots I encounter while driving.

I read this news as:

More avenues of (black) money for the RTO office & harassment by the enforcing authorities.

When I read the title I first read it as "annual renewal of car registration" and was elated for a few seconds, before I wiped my eyes in disbelief and noticed the words "drivers license" and sighed in disappointment.

Yes certainly India should be more careful.
We also badly need a clean, decent government who have the interests of the people at heart.
We require proper infrastructure and first class, safe public transport systems. If we had a safe option for park and ride or a first class public transport system that works and which includes last mile connectivity, I would happily forsake my personal vehicle and use the public transport!
We require all this before we start talking in terms of imposing more taxes on an already over taxed middle class.
As part of the tax paying public, I will state that we get nothing at all in return from this and other governments here except scams and corruption. Hence the mood here is dangerously high.
Our Indian politicians and hangers on do not want to govern. They only want to rule,throw their weight around and make enough money for all their ilk and successive generations of filth that they create.
Since you live in Oz go and check out some of the educational institutions in and around there. Take a good hard look at the profile of some of the students there - many of whom are the off-spring of the great Indian scum politico class. Check out the types of cars and stuff that these said off-spring drive about in and the kind of money they spend and you will have some inkling of what I and others are railing and ranting and raving against!

The government should improve road infrastructure before taxing people. They need to build good highways and flyovers to reduce traffic, rather than tax people for second car.

Diesel prices should be deregulated rather than tax diesel car buyers a hefty amount. There are a lot more loopholes in government regulation that people take advantage of. Diesel car buyers should not be penalised.

During the last days of the British rule, Winston Churchill opposed the grant of freedom to India. He goes on to say, "
Power will go to the hands of rascals, rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight amongst themselves for power and India will be lost in political squabbles. A day would come when even air and water would be taxed.”
It really amazes me.

The first step towards a better India is, only Tax Payers should have the right to vote. Though we are a handful, we would best decide how and where the money will be earned and spent. Sadly its the illiterate mass's numbers that makes or breaks the government.

Oh, yeah. Wonderful.:Cheering:
Guess where the 45rs tax included in my Rs71/litre of petrol has gone.
as if the surplus revenue of the existing BOT system is not sufficient for 'perking' up the infra. :deadhorse

Quoting @ssanjeev since he has raised very valid points. Not otherwise.

No Comments on Population part, while I agree on the finite natural resources part.
Agreed - But Why ? Are we not paying enough taxes to fund the infrastructure. I squarely blame ourselves for not placing the right people at the helm.
Agreed. But do we need to expand cities ? What about secondary cities ? Why are these not developed ? Point 2 should be provided in Tier 2 cities. Why is it not ?
Again I squarely blame ourselves for not placing the right people at the helm.

Changes and Legislation are required for forward looking countries. While most proposals make sense, some do not.

The proposed annual renewal of driver's license will make matters even worse for the govt. Due to Pt 1 above, I am sure the RTA office is already busy issuing 20-yr licenses, other state taxes and what not.
More work for the RTA (assuming people flock to get their's re-issued). hmmm ? & Who is going to enforce ? Looks more like a Employment generation scheme for govt.

In all probability, I am positive that the 'authorities' will misuse to their benefit in the event of the above passing.

We still have some sensible leaders at the top who will not let such atrocity happen (am hoping so).

As is the case with other outrageous policies, this is also part if the govt to completely destroy industries. I never had respect for the netas and babus; the administration over the last 7 years has been the worst ever, worse than that of VP Singh.