State government passes two Bills to simplify motor vehicle tax system

Commercial vehicles, less than six tonnes, had to pay taxes after every three months which now should be mandatorily paid in yearly mode

MP, 19 Feb 2024, Kolkata: The state government, on Saturday, passed two Bills in the state Assembly simplifying the over four decade-old motor vehicle tax system and at the same time introduced “attractive” rebates for one- time payment of tax. 

“Commercial vehicles, less than six tonnes, had to pay taxes after every three months which now should be mandatorily paid in yearly mode. It came to our notice that 60 per cent of these vehicles do not pay taxes even though the amount is a meagre Rs 165 for three months. We feel they do not want to waste a day going to the motor vehicle office to pay this tax amount which is surely less than a single day income for them. 

Now, with payment after one year, which comes to Rs 660, we are hopeful they will do the needful,” Snehasis Chakraborty, state Transport minister said. 

Auto rickshaws, e rickshaws, tractors, agricultural trailers, construction equipment vehicles etc come under the category of less than six tonnes. 

For all commercial vehicles, a rebate of 15 percent has been allowed if tax is paid three years in advance which will go up to 30 per cent if paid five years in advance, and 40 per cent if the same is done 10 years in advance. 

According to the Transport department, 25 per cent of the vehicles weighing above six tonnes are defaulters.

“Private cars and omnibuses, whose registrations were done along with payment of tax for five years, can now pay 7.5 per cent of the value of the vehicle which will be treated as their lifetime tax payment,” Chakraborty said. 

Department sources said 3.5 lakh cars, purchased in 2019, can avail this one-time tax payment facility. In the existing system so far, 5.5 per cent of the price of the vehicle needed to be paid as tax every five years for 15 years which is considered as the lifespan of a private vehicle. 

However, if somebody paid the entire tax he had to pay 10 per cent of the vehicle cost. The Transport department has estimated that even if 10 per cent of the vehicles avail facilities of this one-time tax payment, the revenue of the department in next year will rise at least by another Rs 900 crore. 

The two Bills namely - The West Bengal Motor Vehicles Tax (Amendment ) Bill 2024 and The West Bengal Additional Tax and One Time Tax on Motor Vehicles (Amendment) Bill 2024 are aimed at ensuring that vehicles run on roads with proper documents. 

https://www.millenniumpost.in/bengal/state-government-passes-two-bills-to-simplify-motor-vehicle-tax-system-552666