Month after removal, cantonment areas in Pune to charge vehicle entry tax
The Goods and Services Tax (GST) had abolished vehicle entry tax from various cantonment limits but the Defence ministry reversed its decision recently.Updated: Jul 31, 2017 08:46 IST
A month after Goods and Services Tax (GST) came in to effect, scrapping the vehicle entry tax at various cantonment limits in Pune, the Defence ministry has reversed its decision and has decided to reintroduce the system once again. According to the Pune cantonment board officials, the Director General Office (Defence Estate) Defence ministry recently sent a letter to all the cantonment boards in the country that includes three cantonment boards in Pune asking for re-introduction of vehicle entry tax.
To ratify the decision, the Pune Cantonment Board has called a General Body meeting on Monday. After GST, the three cantonment areas, Pune Cantonment Board (PCB), Khadki Cantonment Board (KCB) and Dehu Road Cantonment Board (DCB), abolished vehicle entry tax applicable for tourist vehicles as well as the Local Body Tax (LBT).
Following the abolishment of the tax regime, the three cantonment boards cited financial loss and had requested the Defence ministry to allow them to accept vehicle entry tax. After the vehicle entry tax was abolished, the PCB had to give up an annual income of Rs12 crores while KCB and DCB were to suffer the loss of Rs10.46 crores and Rs20 crores respectively.
Following the implementation of GST, cantonment board members from Pune and other places visited Delhi to meet Minister of State for Defence Subhash Bhamre and explained to him the difficulties the cantonment boards were facing in view of the financial loss. According to PCB CEO Dr DN Yadav, the Defence ministry studied the proposal submitted by the board members and issued the fresh diktat. “A letter issued by the Defence ministry has reached the Defence Estate office in Pune from where it was sent to all the three cantonment boards,” Yadav said.
According to KCB members, vehicle tax was most crucial source of KCB income. After GST took away the vehicle tax, it create a major challenge before the KCB to meet its expenses, said its member.
After the Vehicle Entry Tax was abolished, the PCB had to give up annual income of Rs 12 crores while KCB and DCB were to suffer the loss of Rs10.46 crores and Rs20 crores respectively.