Mumbai RTO revenue takes a hit with dip in registration for new vehicles
The rising fuel prices and interest on vehicle loans is affecting the transport department's coffers. The department has failed to achieve its revenue target from Mumbai in 2011-12.mumbai Updated: Apr 27, 2012 01:57 IST
The rising fuel prices and interest on vehicle loans is affecting the transport department's coffers. The department has failed to achieve its revenue target from Mumbai in 2011-12. Officials attribute it to the marginal increase in car sales, which was below expectations.
The Mumbai Regional Transport Office (RTO) could not reach its annual revenue target due to a drop in registration for new vehicles in 2011-12. Their target for the year was Rs741 crore, but they could collect only Rs619 crore in revenue.
"Most of Mumbai's revenue comes from motor vehicle tax, but, this year, the sale of new vehicles was below expectations, and hence, there has been a dip in revenue," said VN More transport commissioner.
The overall revenue collection of RTO's is based on motor vehicle tax, passenger tax, compounding fees and other fees. For transport department.
"We reached targets in the first quarter of the financial year, but it decreased in the second and third quarter as new vehicle registration decreased. This was due to the slow down in the economy. People are wary of purchasing new cars as the fuel prices, and bank interest rates have increased in the year," added More.
The RTO's overall revenue collection decreased by Rs10 crore compared to the previous financial year. During 2010-11, the three RTOs collected Rs628 crore.
The state transport department has managed to cross their target of Rs4,000 crore, with the revenue at Rs4,200 crore.