To curb road accidents, govt tables bill for 1% traffic cess

MUMABI: In an additional burden on taxpayers, the state government tabled the Motor Vehicle Tax bill which proposes to levy traffic cess at 1% of registration fee

MUMABI: In an additional burden on taxpayers, the state government tabled the Motor Vehicle Tax bill which proposes to levy traffic cess at 1% of registration fee on new vehicles and the ones permanently migrated from other states.

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While adding about Rs250 crore per annum to the state’s kitty, the cess will range between Rs60 and Rs7,000 depending on the cost of the vehicle; for example, a Rs7-lakh four-wheeler will be levied Rs630.

The state has proposed to utilise the collected funds for road safety schemes and initiatives: including a dedicated safety cell to analyse road accidents and remedial measures; including, building brake-test tracks; CCTV cameras in all transport offices; improving road infrastructure by identifying accident prone spots on state highways; and awareness programmes.

Though the bill has the provision of levying the cess up to 10%, the department has decided to levy 1% in the beginning.

“The cess will range from Rs70 to Rs100 for two wheelers. It goes up to Rs700-1000 for highend four wheelers costing up to Rs10 lakh. It is 1% of the RC fee, which is 9% of the cost of the vehicle. If the vehicle is high-end costing Rs75 lakh, the cess may be Rs7,000,” said an officer from the transport department.

The official said that the fund proposed is as per the provisions in the Maharashtra Transport Act which has its own provisions in road safety in addition to the Motor Vehicle Act.

He said that the fund will be proved vital in reducing road accidents. Each day, more than 400 people lose their lives in road accidents in India.