Snarls on Mumbai roads soon? More cars may be registered at RTOs after GST abolishes Octroi

Mumbai city news: The GST rollout could see more vehicles being registered at Mumbai’s regional transport offices

The Goods and Services Tax (GST) rollout could see more vehicles being registered at Mumbai’s regional transport offices. RTO sources said vehicles registered at Mumbai’s RTOs might go up by 10%-25%.

More registrations in Mumbai could add to the congestion and parking woes. (HT File Photo)

The reason?

The implementation of the single-tax system, GST, will scrap Octroi — a system under which a high tax was imposed on vehicles registered in Mumbai.

Before GST, the BMC used to impose a 4.5% tax on vehicles registered in Mumbai. This was much higher compared to other local civic bodies, such as Thane, Raigad and Palghar districts.

To avoid the high tax, many buyers would register their vehicles, especially commercial and high-end ones, at Pen, Vasai, Thane, Kalyan and Panvel.

“People would register commercial vehicles and high-end cars on addresses of second homes, farm houses, factories or godowns that are located outside Mumbai, in areas like Turbhe, Bhivandi, Vasai, Virar, Palghar, Khopoli and Panvel, where local body tax was not applicable or as high,” said an RTO official.

Already, around 850 cars are registered in the city every day.

Currently, most tourist taxis in Mumbai Metropolitan Region are registered at the Thane RTO, because of Octroi tax and pollution norms.