Thursday, November 24, 2011

Farm vehicle owners forced to pay life tax

HYDERABAD: Despite a court order upholding imposition of life tax on construction vehicles, most vehicle owners have been plying them without paying tax.

In the latest crackdown, Regional Transport Authority (RTA) officials have seized 13 vehicles in the last 10 days and collected tax to the tune of Rs 10 lakh.

Also, the RTA officials found that most owners of the 1,245 registered construction vehicles in the twin cities have not paid the prescribed life tax despite the AP High Court upholding imposition of life tax. Till February 2010, owners of construction vehicles used to pay quarterly tax despite it was classified as non-transport vehicle, but subsequently the state government decided to impose life tax instead of the quarterly tax.

"Some vehicle owners then approached the high court and got a stay on the government's decision. The court while granting stay asked the owners to first pay 50% of the prescribed life tax until the final judgment. In September 2011, the court upheld the state government decision to impose life tax," joint transport commissioner G Panduranga Rao told TOI.

The state government had levied 7.5% of the cost of the vehicle as life tax for vehicles up to 11 years, while for others it is 4% of the cost of the vehicle.

However, despite the high court's order, life tax was paid by only by 167 owners of the 1,245 registered vehicles. "In the case of nearly 600 vehicles, it was found that for last several years they have neither paid quarterly tax nor life tax. The special drive will continue as we have formed five teams to recover the arrears," Panduranga Rao said. RTA officials said that the total life tax due from construction vehicles was close to Rs five crore.

Though the vehicles were registered in various RTA offices in the twin cities, most of them were found to be operating in other districts or other states.

 

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