Himachal offers penalty-free vehicle registration

Govt has also decided to waive off penalties and interest on Passengers and Goods Tax (PGT) for defaulters till June 30

The Himachal Pradesh government has announced that vehicle owners, who have yet not registered their vehicles, can do so at the current market price without attracting any penalties. This is to facilitate the owners of goods carriers, two-wheelers, tractors, poclain, JCB, or any other four-wheelers to register their vehicles at the current market price without attracting any penalties.

Himachal Pradesh chief minister Sukhvinder Singh Sukhu

Chief minister Sukhvinder Singh Sukhu said this would benefit thousands of people in the state by reducing the risks associated with driving unregistered vehicles. The government aims to encourage compliance with registration requirements and ensure road safety by providing a chance to register vehicles without penalties.

In addition to this, the state government has decided to waive off penalties and interest on Passengers and Goods Tax (PGT) for defaulters. The government has set a deadline of June 30, 2023 for PGT defaulters to take advantage of this facility. They can obtain their no objection and tax clearance from the state taxes and excise department by paying one-time settlement fee along with the principal amount. Additionally, clearance from the transport department is mandatory for vehicle passing and operation.

This one-time relief is intended to address outstanding tax liabilities and facilitate the implementation of the special road tax as a replacement for PGT.

The government’s decision will benefit 1,60,291 goods carrier owners in Himachal Pradesh, including those with small and large goods vehicles as well as tractors. These owners faced financial difficulties during the Covid pandemic, resulting in a substantial increase in their PGT liabilities. In response to the challenging circumstances, the state government has adopted a humanitarian approach and decided to settle all tax liability cases in a single instance, said the chief minister.

CM Sukhu said that previously, PGT defaulters were required to pay 18% on the principal amount, in addition to a penalty ranging from ₹100 to ₹5,000 per quarter to the state government. However, the government has now provided significant relief by waiving off these penalties and interest charges. This relaxation by the state government will bring relief to the owners of goods vehicles, enabling them to regularise their tax liabilities and resume their operations without burden of accumulated penalties and interest. It is a significant step to support the transport sector, particularly during the challenging circumstances posed by the pandemic. The government’s focus on providing assistance and facilitating economic recovery will contribute to the overall growth and development of the state, said the chief minister.