Governor gives assent to two Bills, paves way to simplify over 40-yr-old motor vehicles tax system

Kolkata: Bengal Governor C V Ananda Bose has assented to 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 that were passed in the state Legislative Assembly on February 17.

The Bills paved the way for simplifying the over four-decade old motor vehicle tax system and introduction of attractive rebates for one-time payment of tax. “Commercial vehicles less than 6 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 that they do not want to waste a day going to the motor vehicle office to pay the tax amount which is surely less than their single day income. Now, with payment after one year, which comes to Rs 660, we are hopeful they will do the needful,” a Transport department official 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 per cent will be allowed if tax is paid three years in advance. This will go up to 30 per cent if paid five years in advance and 40 per cent if paid 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 registration 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.

Sources said 3.5 lakh cars purchased in 2019 can avail this one-time tax payment facility. The Transport department has estimated that even if 10 per cent of vehicles avail facilities of this one-time tax payment, the revenue of the department next year will rise at least by another Rs 900 crore.