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Our Bureau

`When the owner has already paid the life tax on the motor vehicle in one State, how can you expect him to pay it again in another State? It is absurd.'

Coimbatore , April 27

EVEN as the practice of paying life tax on motor vehicles is widely prevalent, it cannot always be construed as for the life of the vehicle. While the tax paid by the Defence personnel on motor vehicles in one State is valid in all other States, the facility is not extended to all others.

This disparity in treatment of the life tax for different sections of the populace has come under fire. Consumer organisations say that this treatment is unjustifiable as it results in loss to consumers.

Stating that the very purpose of the term life tax stood defeated when the same vehicle was moved from one State to another, Mr K. Kathirmathiyon, Secretary of the Coimbatore Consumer Cause (CCC), argues that the life of the vehicle would continue to remain the same immaterial of the shift.

"When the owner has already paid the life tax on the motor vehicle in one State, how can you expect him to pay it again in another State? It is absurd."

Though theoretically one could get back the unutilised portion of the tax from the lifetime tax paid, after deducting the tax for the period the vehicle plied in the State of purchase, practically it is near impossible because the owner of the vehicle would have to go to the State of purchase with the original papers and apply for the same.

"We doubt if the respective State Governments have refunded even one per cent of such cases," the CCC Secretary said.

While requesting the Centre to make necessary amendment in the Motor Vehicles Act for fixing a uniform life tax for non- transport vehicles, besides making it statutory that the life tax once paid in one State be valid for all States in the country, the CCC has made a point by asking the Government to pass necessary instructions in the meantime for refund of the unutilised portion to the consumer along with the NOC issued for re-registration of the vehicle in another State.

As per the Motor Vehicles Act, a motor vehicle registered in one State may be kept or plied in another State without re-registration for a period of 13 months.

But the tax would have to be paid if the vehicle is plied for more than 30 days in the other State, immaterial of the life tax already.

Mr Kathimathiyon contended that the argument by the respective State Governments that tax would have to be paid for plying the vehicle in their State was unreasonable and unjust. "If non-transport vehicles (private vehicles) are permitted to ply anywhere in India based on a registration in any one State, then lifetime tax paid in one State should be valid throughout the country."

He added that the Motor Vehicles Act was a Central Act covering all States, while taxation was a State subject.

The CCC has sought the attention of the Secretary of Road Transport and Highways to resolve this issue and enforce uniformity in treatment to all citizens.

More Stories on : General Insurance | Tamil Nadu

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