Central government abolishes VET in PCB area
Earlier in 2022, the ministry of defence had banned the collection of vehicle entry fees in all cantonments however the PCB administration continued with the practice
PUNE: The central government on Tuesday abolished the collection of vehicle entry tax (VET) from commercial vehicles in the Pune Cantonment Board (PCB) jurisdiction. The ministry of defence issued a notification in this regard on April 11.
The notification stated, “In the exercise of the powers conferred by subsection (2) of section 66 of the Cantonments Act, 2006 (41 of 2006), the cantonment board Pune with the previous sanction of the central government, hereby rescinds the notification of the Government of India in the ministry of defence number S.R.O.no.1/2/62/file no.1/2/vehicle entry tax/2001, dated June 26, 2001, published in the Gazette of India, Part III, section 4, except as respects things done or omitted to be done before such rescission.”
The director-general of Defence Estates Office under the ministry of defence stated in its order, “It is observed that the collection of vehicle entry fee by cantonment boards by installing barricades or nakas (collection kiosks) does not conform to the government’s initiative towards smooth movement of goods and traffic, and impedes the efforts towards ease of living and ease of doing business.”
Earlier in 2022, the ministry of defence had banned the collection of vehicle entry fees in all cantonments however the PCB administration continued with the practice arguing that VET was allowed by the central government in 2001.
On January 9, 2022, the ministry of defence had issued an order for the immediate cancellation of vehicle entry fee by all cantonments. However, the PCB reasoned that it was charging VET and not vehicle entry fee. The then PCB chief executive officer (CEO) Amit Kumar on January 10, 2022 issued a public notice stating, “It is clarified to the general public that vehicle entry fee from vehicles running in the PCB area has been discontinued from January 7, 2022. However, the PCB has been levying a VET since June 30, 2001, which has not been discontinued.” The PCB notification was severely condemned by former elected members who accused the board administration of disobeying the central government and plundering citizens. They further alleged that the move was brazen mockery of the central government rule wherein the PCB had circumvented the law in an abuse of its powers to extract VET from citizens despite the same being abolished by the central government.
Following the abolition of VET in the PCB jurisdiction and given that the PCB has been earning revenues to the tune of Rs15 crores to Rs20 crores annually from VET, former PCB vice-president (VP) Vinod Mathurawala said, “Our main concern is that if VET is abolished, whatever little is being earned by the board will also get wiped out. Already, we are living through the worst financial crisis of our times.”
Whereas nominated member Sachin Mathurwala said, “The government has taken a decision as per the wishes of the people which must be respected at all costs. The central government will soon sanction more funds for PCB development.