Navi Mumbai: Vashi RTO to miss revenue target, officials blame LBT

Say motorists get their vehicles registered at the Pen and Panvel RTOs, where the 3% Local Body Tax is not applicable; the RTO will miss its target for the second year in a row

With barely three months to go for the end of the 2014-15 fiscal, officials at the Regional Transport Office (RTO) in Vashi say they are going to miss the revenue target set by the state transport commissioner for the second year in a row.

Representation pic

Between April and December 2014, the RTO has been able to collect only Rs 146 crore as against the target of Rs 237 crore. With the financial year ending in March, the RTO, thus, has to collect an additional R90 crore in just three months, which, officials say, is very unlikely.

According to RTO officials, the Local Body Tax (LBT), which is applicable for vehicle registrations at Vashi RTO is the main reason behind the revenue shortfall. Despite the tax being brought down from 4% to 3% in 2013, motorists are getting their vehicles registered in the Panvel and Pen RTOs, where the LBT is not applicable.

Speaking to mid-day, Deputy Regional Transport Officer (Vashi) Sanjay Dhaygude said, “Registration of vehicles has reduced due to the LBT. People prefer getting their vehicles registered at the neighboring Panvel and Pen RTOs, where LBT is not applicable. Over 70-80% of our revenue comes from the motor vehicle tax, which is charged during the registration, and the dip in the number of vehicles being registered with us is affecting our revenue collection.”

With the LBT standing at 3% currently, a motorist purchasing a vehicle costing Rs 1 lakh would have to pay an additional Rs 3000 along with the motor vehicle tax of around Rs 7000 (the percentage of motor vehicle tax applicable is in the range of 7-9%, depending on the price of the vehicle). People prefer other RTOs as they don’t have to pay the additional R3,000 there, which only goes up as the price of the vehicle increases, added Dhaygude.

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