Trade Tax Dept loses Rs 30 cr
THE TRADE Tax Department may have lost around Rs 30 crore revenue with the government having made tax free the purchase of automobiles at the Saifai Mahotsav, but the Transport Department has certainly become ?richer? by Rs 65 lakh.Updated: Jan 05, 2006 01:08 IST
But Transport Dept rakes in Rs 65 lakh
THE TRADE Tax Department may have lost around Rs 30 crore revenue with the government having made tax free the purchase of automobiles at the Saifai Mahotsav, but the Transport Department has certainly become ‘richer’ by Rs 65 lakh.
As many as 15,115 vehicles were sold and purchased at the Saifai Mahotsava this year enabling the transport department to realise a total of Rs 64.77 lakh by way of registration of vehicles.
Significantly, the number of vehicles sold this year is more than double the last year when only 6,000 vehicles had been sold and purchased at the Saifai Mahotsav. The transport department had earned merely Rs 37 lakh last year.
As per information at the Transport Department headquarters here, a total of 8,657 two-wheelers and 6,192 four-wheelers were sold at the Saifai Mahotsav, which concluded recently. Besides, 255 tractors and 11 tempos and delivery vehicles were also sold.
In fact, the attraction of trade tax exemption on purchase of vehicles from the Mahotsav drew people from various parts of the State to Saifai. It is another matter that the exemption is estimated to have caused Rs 30 crore loss to the Trade Tax Department. Last year the loss was calculated at Rs 14 crore. At present, the trade tax on automobiles in the State is 13 per cent, including one per cent development tax. However, the government had waived off only 12 per cent tax.
Though the Transport Department mopped up Rs 65 lakh revenue by way of registration fee, the same might not be said to be its additional revenue. Those who had planned purchasing vehicles would have purchased ones- tax exemption or no exemption. The only difference is that some buyers must have postponed or preponed their decision of buying vehicles due to the Mahotsav.
Transport commissioner, CB Paliwal also agreed to this view. “Personally I do not see it as additional revenue which was bound to come sooner or later,” he
said. This view is also established from the fact that registration of vehicles in districts like Lucknow and Kanpur dipped substantially in December with a lot of buyers making a beeline for Saifai. For example, the revenue from registration of vehicles declined by Rs 80 lakh at the Lucknow RTO office alone in December 2005 compared to December 2004. Paliwal said he had also issued directions to the staff to keep track of vehicles purchased from the festival to ascertain if there were any fake bookings there.