Team-BHP - High Court lifts double tax on imported cars

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came across this article in DNA:

good news for guys buying imported cars.....
Bombay high court lifts double tax on imported cars - Mumbai - DNA

Quote:

....after the double tax imposed on imported cars by the state was relaxed by the Bombay high court on Friday.

These vehicles will now be taxed 7% of their cost, instead of the earlier 14, just like the ones manufactured in India.

I don't get it please:. What is this 7% tax ?

^^ This must be for extra road tax charged for Imported cars in Maharastra.

Will this benefit be transfered to the consumers because 7% on a Rs1Cr car comes out to Rs7l which is equivalent to a fully loaded Hyundai i20 1.2 .

Quote:

Originally Posted by .anshuman (Post 2243278)

^^ This must be for extra road tax charged for Imported cars in Maharastra.

Thanks Anshuman, never really knew till now that they charged extra road tax's for certain type of car's.

Excellent breakthrough. Yes if one owned an Imported car, the tax was as high as 14% or even some more. This was arbitrary. Imagine what the tax on a Rolls would go up to. Due to this wayward taxation system, many persons sought to register their cars in other states while others just chose union territories to register their cars.

This is a great move against the monopolistic order by the Transport department.

We paid almost 100% tax when we registered the LHD in bombay. This IS a very good move. So now we can scout for cars outside Maharashtra without worrying about massive tax figures.

I can just hear some Mondeo owners heaving a sigh of relief. It wasn't too long ago that, one fine morning, they received a notice from the RTO for additional tax on their Mondeos (some over 2 years old). Their pleas weren't entertained by the authorities or Ford.

Quote:

Originally Posted by stanjohn123 (Post 2243276)

I don't get it please:. What is this 7% tax ?

CBUs (completely built up cars) imported into the country attract a higher road tax in MH (and some other states). The Mondeo was a CBU, hence was technically liable to pay double the road tax.

This High Court order is a step in the right direction; the 100 % import duty is hefty enough as a disincentive.

Here's a related news article on the Mondeo from 2003:

Quote:

Mumbai If you happen to be a Ford Mondeo owner, chances are you will have to pay an extra Rs 60,000 over and above what you paid for your car. Especially, if you have bought the car before December 2002.

You’re likely to be told that in the form of a notice from the Regional Transport Office (RTO), which claims that the manufacturer or its dealers failed to inform the authorities about the Mondeo being a Completely Built Unit (CBU) or, simply put, a car not manufactured in India.

This resulted in Mondeo owners being charged a one-time Road Tax (under the Bombay Motor Vehicles Tax Act) of four per cent as compared to the eight per cent levied on imported vehicles.

“I am absolutely clueless. If this is indeed the case, this should be sorted out between the company and the RTO. Why should I be paying up for somebody else’s fault?” says Mondeo owner Anoop Patel (name changed), who purchased his car in April 2002.

Link to Full Article