For the First time: RTOs in MMR see more than 50% rise in revenue collection
According to senior officials, this has also contributed to the increase in the tax revenue collection of RTOs.
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According to official records, vehicles registered in MMR has increased by 4.32 per cent — 2,76,904 vehicles this year as compared to 2,65,416 vehicles in 2016-17. Source: Dilip Kagda
IN A first, the Regional Transport Offices (RTO) in the Mumbai Metropolitan region (MMR) have registered an increase of over 50 per cent in their annual earnings through the registration of vehicles this financial year as compared to last year. The reason that are cited for the growth include increase in the number of vehicles registered, high motor tax levied on vehicles in Maharashtra and removal of Octroi .
Four major RTOs in Andheri, Borivali, Wadala and Tardeo have recorded a total revenue collection of Rs.1,542 crore in 2017-18, which is 57 per cent more as compared to Rs. 980 crore in the previous financial year. According to senior RTO officials, Mumbai-based RTOs are recording such a growth for the first time.
“Many reasons could be attributed for the hike. There was a healthy increase in the number of vehicles registered in Mumbai as collection of Octroi was abolished after the implementation of Goods and Service Tax (GST) from July 1, 2018. Consumers, who would register their vehicles outside Mumbai in parts of Thane, Navi Mumbai or within Maharashtra to evade the payment of Octroi tax stopped doing that as Octroi was abolished altogether,” a senior RTO official said.
Vehicle buyers used to to pay 4.5 per cent Octroi on the market price of the vehicle purchased, if they would register their vehicles in any RTO in MMR. According to official records, vehicles registered in MMR has increased by 4.32 per cent — 2,76,904 vehicles this year as compared to 2,65,416 vehicles in 2016-17.
Maharashtra had also hiked the one-time registration tax on private vehicles and two-wheelers in July last year. While the registration tax was increased to 10-12 per cent from 8-10 per cent for two and three-wheelers, tax on cars running on petrol, diesel and CNG was also increased in different levels. According to senior officials, this has also contributed to the increase in the tax revenue collection of RTOs.
“With an increase in the total registration of vehicles, the hike in tax fee increased the registration revenue amount as well. Before the use of vehicles complying with Euro IV norms was mandatory, consumers would buy vehicles complying with Euro III norms and register them outside Mumbai as it was comparatively cheaper. As using vehicles following Euro IV standards of safety is obligatory now, these vehicles are costlier which further increases the tax collected from them,” a senior RTO official added.
Mumbai also relaxed the curbs on permits for public transport vehicles including taxis and rickshaws in June last year. Officials said this increased the total number of kaali peelis and rickshaws registered in the city. “There was an increase in the number of kaali peelis registered,after the curb on the permits was removed. The RTOs within and outside Mumbai also registered an increase in permits for rickshaws after the curb was removed. This further increased the total revenue collection, an RTO official added.
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