E-Paper
PCB sends proposal to DGDE office giving nod to cancellation of VET
Following the directions, VET collection in at least ten cantonments will be scrapped on a permanent basis
The Pune Cantonment Board (PCB) administration has sent a proposal giving its nod to the cancellation of vehicle entry tax (VET) in the area after the union government-administered Director General of Defence Estates (DGDE) office issued orders to the effect. Following the directions, VET collection in at least ten cantonments will be scrapped on a permanent basis. The PCB has been earning Rs12 crore by imposing VET on vehicles passing through its jurisdiction.
The PCB officials informed Hindustan Times that the administration has sent the proposal seeking scrapping of VET in its jurisdiction and is awaiting publication of the gazette notification by the centre, which can take place anytime soon. Sources told this newspaper that the VET will be immediately stopped from the date of publication of the said notification. Subrat Pal, chief executive officer (CEO), PCB, could not be reached for comments. A message sent to the CEO on the issue remained unanswered.
In January 2022, the ministry of defence (MoD) had ordered the immediate stoppage of vehicle entry fee (VEF) by cantonment boards across India. Following the directive, the Dehu and Khadki cantonments in the city had immediately implemented the order while the PCB administration had said that it will continue collecting VET as the MoD order was applicable only to cantonments collecting VEF and not VET.
The PCB had issued a public notice stating, “It is clarified for the general public that the VEF from the vehicles running from the cantonment area has been discontinued vide letter number 76/67/Misc/C/DE/ 2021/Vol III dated January 7, 2022. However, the PCB levies the VET vide serial number 1/2/62/File No. 1/2/Vehicle Entry Tax/2001 dated June 30, 2001 and corrigendum dated September 15, 2001 which is under force and is not discontinued.”
However, the PCB’s decision to continue with the VET had been termed illegal and in contravention with the directive of the union government by cantonment residents and commuters. Terming VET recovery as extortion despite a ban by the central government, area residents had complained that their former elected representatives were found wanting in demanding a stop to the tax collection.
The PCB is currently undergoing the worst financial crisis since it came into existence, and faces a revenue deficit of over Rs500 crore since 2017. The board administration requires at least Rs7 crore as establishment cost fund, which is used to pay just the salaries of its employees. A number of developmental works have taken a hit due to the shortage of funds. The PCB is yet to receive the Goods and Services Tax (GST) dues of over Rs459 crore which have been pending since 2017.
Social worker Rajabhau Chavan said, “The central government had ordered closure of all VET collection posts in all cantonments across India and yet the PCB went ahead illegally collecting the tax by playing with the words, ‘resolution’, ‘VET’ and ‘VEF’. The board administration misled the public and its act amounts to disobedience to the central government. The VET is unjust and must be scrapped immediately in the larger interests of the citizens. An audit must be conducted about VET funds collected after order issued by the centre.”
