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Rebate lure for advance road tax: Bill targets three-wheelers to boost revenues

A 5 per cent rebate is now allowed to those who pay a year’s road tax in advance for three-wheelers

Kinsuk Basu | Published 08.02.24, 06:41 AM
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The state government has decided to amend the motor vehicles tax rules and allow a 15 per cent rebate on road tax to owners of autorickshaws and other commercial three-wheelers if they pay three years’ tax in advance.

A 5 per cent rebate is now allowed to those who pay a year’s road tax in advance for three-wheelers.

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The government has proposed a rebate of 15 per cent of the road tax for three-wheeler-owners if they pay three years’ tax in advance. The waiver will be 30 per cent for those who will pay five years’ tax in advance and 40 per cent for those who will pay 10 years’ tax in advance.

Officials said the primary target in the city are autorickshaw-owners. There are over 35,000 autorickshaws in Kolkata. Senior transport department officials said the majority of them do not pay any road tax after paying a year’s tax in advance.

Besides autorickshaws, the waiver will be applicable to the owners of three-wheeler goods vehicles, e-rickshaws, three-wheeled tractors and construction equipment vehicles.

“The amendment has been proposed in the form of a bill — the West Bengal Motor Vehicles Tax Amendment Bill 2024. The bill has been sent to the governor for his assent,” an official in the finance department said.

“The amendment will be a partial modification of the West Bengal Motor Vehicles Tax Act, 1979.”

The proposal for amendment of the road tax rules comes at a time the state government has introduced a waiver scheme for the owners of commercial vehicles.

The scheme allows an 80 per cent waiver of pending penalties, due till December 31, if the owners pay the fees for permit renewal and fitness tests within February 29.

“Owners of commercial vehicles whose one-year advance road tax tenure is about to end will now get a chance to pay three years’ road tax in advance and enjoy a rebate of 15 per cent,” a senior transport department official said.

“Those buying new three-wheelers will stand to benefit significantly if they pay five years’ road tax in advance.”

Senior officials at Nabanna said they hope the amendments would boost revenue collection by several crores. “We are waiting for the governor’s assent,” an official said.

Last updated on 08.02.24, 06:42 AM
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