The country is appearing to be heading in the direction of uniform car prices across India. While GST regime has already brought the nation under the gamut of “One Nation, One Tax”, the government of India is in the process of bringing uniform single road tax structure throughout the country.
Presently, every state has its own road tax laws. Every state is charging different road tax to the vehicle buyers leading to disparities in the ‘on the road prices’ of the vehicles in different states. Some people take advantages of these disparities and register their vehicles in states where road tax is comparatively lower.
The government is moving towards amending the Motor Vehicles Act, 1988 with the Motor Vehicles Act (Amendment), 2016 by re-introducing the bill in Parliament during the current winter session. The bill has already been passed by the Lok Sabha and now is to be presented to the upper house, Rajya Sabha for final approval. The bill envisages a provision of “One Nation, One Tax” on the motor vehicles throughout the country. After the passage of the bill, it will be much easier for the car dealers to register the vehicle without visiting the Regional Road Transport Offices (RTOs).
The new bill is also likely to bring huge changes in the tax administration system. It is being envisaged to privatize the administrative structure of issuing driving licenses too. This is aimed at creating more job opportunities in the country. The function of present RTOs is also being revamped by implementing greater automation and reducing human interventions making it more efficient. The Union Minister, Road and Transport, Nitin Gadkari has said recently that government plans to make the function of RTOs less human intrusive and more efficient.
In spite of the computerization, the present nature of administration activities of issuing driving licenses, registration of vehicles, car fitness certificates, registration transfers etc. encourage touts to flock around the RTOs to act as middle men and extract money from public. Therefore, the much needed transparency and efficiency being planned by the government is expected to bring much relief to the general public.
With the proposed amendment of the Motor Vehicles Bill, the uniform road tax structure thought out the country is also expect to lead to uniform car price across India.