NEW DELHI: The road transport ministry has proposed a new regime of “IN” series for registration of personal vehicles owned by defence personnel, employees of Central and state governments, PSUs and private sector companies and organizations, which have their offices in five or more states/ UTs.
The pilot scheme has been proposed in a draft notification to make the transfer and re-registration of such vehicles to other states seamless and hassle-free. There is a high possibility of such persons getting transferred frequently and they need to take their vehicles to other states.
The vehicle owners will have the option to go for the “IN” series and in this case, they have to pay the road tax for two years or in multiple of two. The entire process will be made online to ensure there is no need to go to the RTOs.
Currently, while registering private vehicles, they need to pay the 15 years’ road tax upfront. If they transfer their vehicles to any other state and go for re-registration, they need to pay the road tax for the remaining years such as 10 or 12 years. Then they need to claim the already paid amount from the state where the vehicle was originally registered. “This is a cumbersome process and many don’t pursue to get back the amount. The new regime will put an end to such a problem,” said an official.
Responding to why the government did not go for a system where the road tax amount is automatically transferred among states, the official said all states need to come on board and secondly the road tax slab is different from state to state.
“In the proposed regime we have fixed what would be the road tax such as 8% for vehicles costing up to Rs 10 lakh and 12% for those costing over 20 lakh. A proper formula has been proposed to ensure that no state suffers any revenue loss. Since the road tax for 15 years has been staggered the charges would be a little more just like we pay EMI for a loan,” said an official.
The current law mandates that any vehicle transferred to any other state must get re-registered within 12 months and any violation is punishable under the Motor Vehicle Act.
The Centre has been struggling to introduce uniform road tax for years to bring parity and make the transfer of vehicles seamless, but it has not made success. The new move is being seen as a solution to this problem. Since the major share of the state’s road tax comes from commercial vehicles, the new regime won’t cover such vehicles.