Activists protest against hike in vehicle tax post GST

Sushant Ranjan
Sunday, 16 July 2017

The activists said that the government is burdening citizens by increasing the tax. “What services are we getting from the Regional Transport Office (RTO)? We pay for their services such as the RC book, licence etc,” they said.

PUNE: City activists have protested against the State government’s decision to increase the vehicle tax by 2 per cent after the implementation of the Goods and Services Tax (GST). The activists said that the government is burdening citizens by increasing the tax. “What services are we getting from the Regional Transport Office (RTO)? We pay for their services such as the RC book, licence etc,” they said. 

“Citizens are already burdened with a high vehicle tax. Whenever, the government wants to increase revenue, it increases the tax. The government doesn’t want to see a smile on citizens’ face. When the GST was launched, prices of vehicles were reduced. However, the government has increased the vehicle tax by 2 per cent. The government is taking away money from people,” said activist Vivek Velankar.

Recently, the State government increased the road tax by 2 per cent. This is a one-time payment that is mandatory while buying a brand new car. It has now been increased for both petrol and diesel vehicles. For petrol vehicles, the tax, which was originally 9-11 per cent of the vehicle value, has been increased to 11-13 per cent depending on its size. The road tax on diesel vehicles, which was originally levied at 11-13 per cent, has gone up to 13-15 per cent, depending on the size of the vehicle. 

The road tax hike is on account of considerable losses the State suffered due to the scrapping of the excise taxes after the GST rollout.

However, high-end vehicles costing over Rs 20 lakh have been kept out of the ambit of this hike.

The activists have also questioned the road tax collection by the RTO, as the civic bodies (municipalities) are already collecting the tax. “There was a one-time tax in 1987-88 for across the State. The road is constructed by the municipal corporation, then why is the RTO collecting the road tax?,” asked Velankar.

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