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Lockdown: AMC’s vehicle tax earnings short of Rs16 cr

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Manoj K Karia, Ahmedabad

Vehicle sales have been on the decline and have been hit hard due to the lockdown. 

The Ahmedabad Municipal Corporation (AMC) is also bearing the indirect brunt of poor sales.

  

The vehicle tax collection of the civic body has taken a hit due to a drop in sales of two and four-wheelers in the city.

It should be noted that a vehicle tax is paid for every new vehicle sold in the city. 

The vehicle tax receipt is a must for Road Transport Office (RTO) to issue a registration of the vehicle.

The vehicle tax collected during the year so far by AMC was a mere Rs9.06 crore against over Rs25 crore for the same period last year.

Even if one were to remove the 80 days of lockdown, the income from vehicle tax is very low compared to the same period last year 

For the period between April 1 to July 27 2020, the civic body got Rs9,06,97,555 by way of vehicle tax for the sale of 16,367 new vehicles.

This means approximately 139 vehicles were sold per day. 

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Last year the earnings from vehicle tax for the same period was Rs25, 90,54,820. 

In all 69,549 vehicles were sold during the said period.

This means 589 vehicles were sold per day.

The civic body has suffered a drop in income of Rs16.83 crore compared to last year.

The sale of vehicles has also dropped by 53,182.

How Lockdown impacted

June 1 onwards, the state was in Unlock mode. 

Government offices began functioning post the lockdown from the said period.

In all, there were 118 days from April 1 to July 27. 

If one were to ignore the two months (61 days) of April and May when Lockdown was in force, it is clear that a mere 287 vehicles were brought per day for the remaining 57 days.

This too is lower than the per day vehicle sales recorded for the same period last year.

What is the tax?

Vehicle tax is a tax imposed by the state government.

As per an agreement between the AMC and the RTO, a ‘vehicle registration’ for any vehicle is issued only after the vehicle tax is paid.

The receipt is a must if one needs to get the ‘passing’ from the RTO.

Usually, a buyer will pay it to the dealer who will then deposit it with the civic centre of the civic body.

Sometimes an owner may continue to ride a vehicle sans any registration.

This is because he may not have paid the vehicle tax and hence could not get it registered.

Such offenders are issued a notice for the tax when caught. They are also penalised for the same.

Tax in numbers

Vehicle Type Cost Tax (%of cost)
Two-wheeler NA 2.50%
Three-wheeler 2.50%
Four-wheeler Upto Rs3.99 Lakh 2%
Four-wheeler Rs4 lakh to Rs7.99 lakh 2.5%
Four-wheeler Rs8 lakh to Rs14.99 Lakh 2.75%
Four-wheeler Rs15 lakh and above 3%

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