Kolkata: In a major relief to car buyers, the state budget has announced a reduction in the rate of lifetime tax that is collected by motor vehicles department from those who wish to pay the road tax for 15 years in one go instead of three tranches of five years. The option will also be available to those who already own vehicles.
The move is aimed to mop up additional revenue by encouraging car buyers to pay lifetime tax.Nowadays, most car buyers opt for 5-year tax as they do not intend to keep the vehicle for 15 years.
Chief minister Mamata Banerjee emphasised her stance against burdening citizens with undue stress, particularly amidst the current financial challenges. She stressed that it is the govt’s responsibility to alleviate the financial burden on the populace as much as possible. Accordingly, this year’s budget has allocated Rs 2187.9 crore for the transport department.
Earlier, the Bengal govt had extended a significant relief measure by offering a 100% waiver on penalties accrued on various vehicle taxes under a waiver scheme. “The govt has announced a 100% waiver of penalties accrued on taxes due up to Dec 31, 2023, if availed within the period from Jan 1 to Feb 29, 2024,” said an official.
Furthermore, the state has declared a 100% waiver of additional fees for vehicles that have not obtained certificate of fitness (CF) on time. Also, there is an 80% waiver on penalties for delayed renewal or issuance of permits.
According to transport department, approximately 12.5 lakh vehicles have pending taxes or have not obtained the CF within the stipulated time frame. Among these, majority are goods vehicles.
The state has initiated a two-month window for waiver of penalties. “We will also offer a waiver of additional fees for vehicles that have not obtained CF on time and an 80% waiver of penalties for delayed renewal or issuance of permits if paid between Jan 1 and Jan 30, 2024. An 80% waiver will be applicable for payments between Jan 31 and Feb 29, 2024,” said transport minister Snehasis Chakraborty.