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12th January 2010, 19:55 | #16 | |
BHPian Join Date: Feb 2008 Location: Chennai/Kuwait
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RTO annual road tax payment modes should become more easy in the current e-governance era | |
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13th January 2010, 11:54 | #17 | |
BHPian Join Date: Dec 2009 Location: Chennai
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There are 48.5 lakh registered vehicles in Delhi alone. Even a not so big city like Pune has 19 Lakh registered vehicles. Now imagine how much paperwork and manpower in required every year to collect taxes from these lakh and lakh of vehicle owners. That would be a colossal waste of time and resourses. E-payment is yet to catch up in India. The reason is, the percentage of internet users in india is just 2.3%. But the percentage of vehicle owners is very high. In chennai it is more than 50%. | |
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13th January 2010, 13:05 | #18 | |||||
BHPian Join Date: Jan 2009 Location: Jaipur, RAJ
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| Lots of complications with the Tax structure in India but problem largely lies not with the laws but the governance of laws. Taxes are high because Infrastructure is falling apart but at the same time Taxes are also high becoz not everything actually goes to Infrastructure. Defense is still the largest pie share holder for Indian Tax payers. Now, we all want peace but it comes at a price and that price is also adjusted in the car we buy. Surely, countries like singapore and Norway are not spending so much on defense. At the same time, A large democracy means coalition is the key to survival. It is also something that slows the growth rate exponentially. So, Taxation on vehicles is not just limited to roads and infrastructure but who our country is governed. There are changes, if brought, would ease taxation just about everywhere and there are things which can't be changed for 'n' reasons (like the concept of democracy). Quote:
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The RTO taxation is completely a state affair and the need to tax all vehicles from other states serves multiple purposes. 1. State roads are maintained by state government. They need money to build these and invariably it needs to shared amongst all vehicles plied on the roads in the state. 2. Since, any vehicle coming from other state has not paid any form of sales tax, VAT, Octroi, etc it is already a liability and hence at least RTO taxation is a minimum they feel justified to claim. 3. It also helps curb people bringing new vehicles from across the border of states causing substantial taxation losses. For example, Haryana VAT is 12.5% and Rajasthan VAT is 14%. On top of it there is major difference in Road tax making vehicles bought from Haryana a lot cheaper than those from Rajasthan. This causes people from border villages/towns to purchase vehicles in Haryana and save money but cause losses to Rajasthan government. In fact one of my friend's father bought an x5 from gurgaon and saved over 2L on total on-road price causing a loss of 2L to government of Rajasthan. So, case in point is that we flout government laws and hence as a result people with honest intentions also suffer. Quote:
Last edited by akhilesh51 : 13th January 2010 at 13:10. | |||||
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13th January 2010, 14:59 | #19 | ||||||
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Last edited by longhorn : 13th January 2010 at 15:08. | ||||||
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13th January 2010, 15:09 | #20 |
BHPian | An Exmaple : Toyota Prius Expected price in India 26.5 Laks. In US its $25000 *50 = 12.5L. So diff amount is almost 14L. Is that all for tax to Indian GOVT, dont think so. It also about the company profit margin. MNC try to keep more % profit as India is an emerging country and we have demand in our country. |
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13th January 2010, 15:12 | #21 | |
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Last edited by longhorn : 13th January 2010 at 15:13. | |
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13th January 2010, 16:51 | #22 | |
BHPian Join Date: Jan 2009 Location: Jaipur, RAJ
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We adopted the system of states and state boundaries al a United States of America but at the same time also have National ruling al a United Kingdom. So, what you end up with is two separate entities both in need of monies to fund itself even as we are still united as a nation. Even in automobile taxation, of the 50% taxation, there is a split between state where manufacturing plant is located, central government, and state of retail of vehicle. Now any reduction in taxation would require a separate reduction from each of the entities involved which is just about impossible because of the fact that we are a democracy and have separate governments heading each of the above mentioned entities which may or may not be same and would allege that the other entity be the first one to reduce taxation and this will go on and forth since their is no definitive head of power, again thanks to us being a democracy. With the problem defined, the solution to our problem lies in change in governance of India which I am sure you agree would not happen ages to come. That leaves with a problem and no solution which means we as people of India, World's largest democracy and world's best constitution and neither completely socialist economy nor completely capitalist economy, have to just get on with the burden of taxation whether we like it or not. And No, you can't claim damages on your vehicle because of bad roads because even if we hypothetically consider this situation, the money paid to you will actually be taken from you. Also, your comparison between taxation and apples would hold true if we were a capitalist economy. Sadly, as I have already pointed out, we are neither socialist nor capitalist and hence it just doesn't work! When you buy apples from a shopkeeper with lower prices, it is smart. When you buy a vehicle from different state to save taxes, it is tax evasion and crime! Remember all those bollywood celebrities and rich business scrambling for cover when customs department came after them on pretext of evasion of duty while importing vehicles. What we do have as a part solution is to go and VOTE. Not to a party but a candidate. Believe me the difference lies just there. Last edited by akhilesh51 : 13th January 2010 at 16:56. | |
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