[sgiitk]

One tax across the nation is ideal. Also, it may do away with each state trying to rip of the motorist with its own tax.

So maybe it is time for the DVLC as in the UK.

[Paradiddle]

Waiting for the day when this bill is passed and put into action.

The current process just gives the local cops a chance to extract money from the mass.

[SJM1214]

Group of Ministers proposes ‘One Nation One Tax’ for commercial vehicles.

The Group of Ministers (GoM), constituted by the Union Road Transport and Highways Ministry, has proposed “One Nation One Tax” policy for seamless movement of commercial vehicles across the country. “In order to ascertain seamless transportation of tourist vehicles and goods trucks, a consensus emerged that a composite annual fee model be implemented throughout the country by adopting One Nation One Tax policy,” the GoM Chairman Yoonus Khan said at a press conference here. The two-day meeting of the GoM concluded here today.

Khan, who is also the Transport and PWD Minister of Rajasthan, said that a committee has been formed with the transport secretaries as their members to suggest different modalities for the same and submit the report within 15 days. “As taxation is related to Finance Ministry, we will raise the matter in the next meeting of the GST Council next month. If it becomes fruitful, then we hope to implement the policy after one month of that,” he added.

Khan said the GoM also noted that variation of taxes on private vehicles within different states should be minimised so that people do not tend to go for registration of their vehicles in lower tax jurisdictions. “It was also agreed that no tax be realised in case a private vehicle migrates from one state to another owing to relocation of vehicle owner,” he added.

In its interim report, the GoM recommended that motor vehicle taxes should be charged by all states on the basis of invoice price of the vehicle and a lifetime tax for 15 years should be charged for personal vehicles in order to harmonise the rates of road tax.

It suggested eight per cent road tax for vehicles priced below Rs 10 lakh, 10 per cent for Rs 10-20 lakh and 12 per cent for those above Rs 20 lakh category, while an additional two per cent has been suggested for diesel vehicles and a rebate of two per cent for electric vehicles.

On issues pertaining to hassles in renewal of license, variation in renewal rates among states, promoting public transport and shared mobility and environment friendly transport like e-vehicles were deliberated and consensus made out to achieve all the above objectives, Khan said.

The GoM reached a consensus that states will undertake a sustained road safety campaign throughout the year to curb delinquent driving and halve fatalities by 2020 and a committee was formed to examine and frame a National Road Safety Policy and Code.

The report said: “The group noted that GST has been a game changer for bringing certainty in the tax treatment and provided a level playing field to all the countrymen. Similarly, uniform road tax will be immensely helpful to curb the menace of tax evasions by registering the vehicles in low tax jurisdictions and then plying the vehicle in another state.”

News Source : https://www.financialexpress.com/eco...icles/1138784/



Image Source: MORTHINDIA Twitter account.

[anshumandun]

Originally Posted by SJM1214

Group of Ministers proposes ‘One Nation One Tax’ for commercial vehicles.

Is this really going to happen? This is like a dream for poor enthusiasts like me who reside in Bangalore. Can I stop looking for jobs in Pondicherry and Chandigarh, the vehicle havens of India?

[coldice4u]

Originally Posted by anshumandun

Is this really going to happen? This is like a dream for poor enthusiasts like me who reside in Bangalore. Can I stop looking for jobs in Pondicherry and Chandigarh, the vehicle havens of India?

Commercial vehicles only

[condor]

One road, one tax may be ideal. But even with same level of tax, I suspect some states will oppose it.

Example: Cities like BLR, HYD, Chennai, where there is migrant population. People who move to these cities will bring in their cars after tax paid in their home state. However, the number of people moving out of KA, AP, TN etc to other states in reciprocation would be much lesser. The other state continues to get some revenue, but these states see more road usage.

A setup like in some other countries where we pay annual road tax wont work in India, due to the sheer number of vehicles. It would increase the workload exponentially, and enforcement is a problem. A better way could be - refund of tax in home state after tax is paid in the resident state ( for remainder of the 15 yr period). Why this may work better is that the number of cars moving is lower than over all vehicular population.

[LionX]

Originally Posted by coldice4u

Commercial vehicles only

Its applicable for the personal vehicles as well.

"In its interim report, the GoM recommended that motor vehicle taxes should be charged by all states on the basis of invoice price of the vehicle and a lifetime tax for 15 years should be charged for personal vehicles in order to harmonise the rates of road tax.

It suggested eight per cent road tax for vehicles priced below Rs 10 lakh, 10 per cent for Rs 10-20 lakh and 12 per cent for those above Rs 20 lakh category, while an additional two per cent has been suggested for diesel vehicles and a rebate of two per cent for electric vehicles"

[Ragavsr]

Originally Posted by condor

A better way could be - refund of tax in home state after tax is paid in the resident state ( for remainder of the 15 yr period). Why this may work better is that the number of cars moving is lower than over all vehicular population.

The refund system already exists and is a flop. It won't stop harassment by cops, RTO and even people who have no authority whatsoever.

My mom is a Vice Principal of a private medical college in Chennai and she received a complaint once of a college security, an ex cop who was threatening students with out of state vehicles after which she sent a dictum to the security to mind only his duty and not the RTO's

The ideal system would be just a change of address online and registration plates with no identifiable state markers.

[aravind.anand]

I just really hope this does not mean "Bangalore taxes" all over India. That would be a disaster for the automotive segment, which is just coping up with the GST and associated cess. But on the other hand, if they are seriously looking at normalizing the jacked-up tax rates at certain unfortunate parts of the country, it is a good move.

Am I the only one who thinks there is an underlying intent in bringing this move right before the elections in Karnataka?

[condor]

Originally Posted by Ragavsr

The refund system already exists and is a flop. It won't stop harassment by cops, RTO and even people who have no authority whatsoever.

This "harassment" is a lot about the car being out of state, and the tax being there but being used here. The refund system is said to be there, but no one seems to have a clear idea of the process - esp the RTA's.

What can be done is:
1) Car is moved to new state
2) Get a NOC for tax refund from home state
3) In the new state, pay pro-rata tax for rest of 15 years against this NOC
4) Refund process integrated with tax payment
5) A tax-paid sticker from the new state.
6) When moving to another state from this 2nd state, similar process.

However, all states need to adhere to it.

This does not cover tourist cars - individual cars used for the trip to other states. May be an online declaration kind of thing:
1) May be a zero-free entry ticket at border which is displayed on the car. The ticket could be valid for fixed period, the date mentioned on the ticket.

So most cars will have either tax paid receipt or the visiting-car token. For those that dont, well ...

[kutts]

If there is a single tax system in place, then why would we even need to re-register when we move out of state ? There is definitely an issue of tracing the owner in case of an incident since his /her address would have changed. Whether we like it or not, the fact is that 99.99% would now have an Aadhaar number. If the Aadhar is liked to the registration your vehicle follows the Aadhaar address. So if you move out of state or change permanent address the first legal document you update would be Aadhaar.

[daywiz]

Originally Posted by kutts

If there is a single tax system in place, then why would we even need to re-register when we move out of state ? There is definitely an issue of tracing the owner in case of an incident since his /her address would have changed. Whether we like it or not, the fact is that 99.99% would now have an Aadhaar number. If the Aadhar is liked to the registration your vehicle follows the Aadhaar address. So if you move out of state or change permanent address the first legal document you update would be Aadhaar.

Totally agree..its a hassle to register and deregister.

Originally Posted by condor

This "harassment" is a lot about the car being out of state, and the tax being there but being used here. The refund system is said to be there, but no one seems to have a clear idea of the process - esp the RTA's.

1) May be a zero-free entry ticket at border which is displayed on the car. The ticket could be valid for fixed period, the date mentioned on the ticket.

So most cars will have either tax paid receipt or the visiting-car token. For those that dont, well ...

Maybe your idea can be built upon. Perhaps, it can be in the following manner

• all vehicles can take upto a one week pass to travel without any additional fee. Longer than that will be chargeable.
• Options can be one week, two weeks, one month, three months, up to less than one year etc.
• Fee should be steeper with the increase in duration. Standard fee across the states
• High traffic cities could step up the fee with 2% additional congestion fee for the permit.
• Total duration including extensions of the permit cannot exceed one year in a particular state within a two/three year period
• For durations longer than one year, the vehicle owner may take two options:
  1. A 90% refund certificate & NOC from original state, thereby avoiding reregistration in a new state but with a 10% co-pay
  2. A full refund is provided, however, the vehicle owner needs to deregister from original and re-register in the new state.

[jagspabla]

We are overthinking this. If the on road price of a vehicle in every state were the same (or almost the same), people would not have any incentive to go to other states and buy vehicle from there. So people would buy from the nearest dealership in whichever state they reside in. So number of vehicles bought in a state ( and road tax paid) would be proportional to the size of population + economy of that state.

If such a person(lets say a software engineer) moves to another state, the other state can gain from the economic value this person generates in that state. Anyway free movement of people will benefit the national economy ( hassle of transferring car to another state can be considered a block to free movement of people for employment to some degree).

If I'm not mistaken, damage to roads happens more due to overloaded trucks carrying 20 tons than your average Maruti Swift.

[4x4addict]

Motor vehicles Departments is a cesspool of corruption and gravy train for the states. I think they will fight this bill tooth and nail.

[53BHP]

I would be inclined to forgive this government most of their mistakes and indescretions if this law is indeed passed favorably. I have been trying to transfer a 25 year old bmw motorcycle from karnataka to maharashtra since the last 2 years and it still has not happened