Vehicles purchased after 1st August 2019 liable for paying 9% MV tax to get registered: RTO Kashmir
Scores of vehicle owners on Friday staged a protest against Regional Office Kashmir (RTO) Srinagar at Press Enclave Srinagar for not issuing them registration certificates for their newly procured vehicles, even though “they have purchased the vehicles before August 5.”
The protesters alleged that due to the lack of coordination between RTO Srinagar office and the vehicle dealers in Srinagar, vehicle owners are facing ‘lot of inconvenience.’
One Ali Mohammad Mir, who was leading the protesting group, said that they had purchased their vehicles before 1st Aug 2019 and had completed all the formalities including payment of Motors Vehicles Tax but now the authorities are denying registration certificates for their vehicles.
Mir said that he had purchased his vehicle before 1st August but was denied registration at the RTO Srinagar. “I have a valid receipt of 22000 rupees issued by RTO Srinagar but they are denying and are asking me to pay extra money to register my vehicle,” he said.
Mir said when he visited the RTO office, the officials asked him to pay extra 9% MV tax. “If the new law was implemented on 1st August 2019, how receipt of 22000 rupees was given to me,” he said.
Another customer from Jawahar Nagar, Fayaz Ahmad Khanday alleged that car dealers and the RTO are siphoning money from the customers without reason.
Khanday claimed that he has a computerized receipt amounting to 22700 rupees issued by the RTO Srinagar on 2nd Aug 2019 for registration of his newly purchased vehicle.
"Since I purchased my car in the month of July 2019, I am clearly exempted from paying the extra 9%, but RTO officials are asking me to pay extra money, which is unacceptable," he said.
As per Khanday, if customers pay GST (Goods and Services Tax) on purchase of vehicles, why they are made to pay additional 9% in the name of Motor Vehicles Tax.
One of the leading vehicle dealer based in Srinagar wishing anonymity told Rising Kashmir that till date they have not received any official communication or order or circular regarding revision of the MV tax.
As per the new rule, implemented on 1st Aug 2019, 9% of the total vehicle cost will be charged as the MV tax. However customers who have purchased their vehicles before 1st Aug 2019 and have been issued MV tax receipts by the RTO as per the old rule.
The vehicle dealer said that due to lack of internet facilities since August last year, hundreds of vehicle registrations are pending with the department leaving customers in lurch.
Regional Transport Officer (RTO) Kashmir Ikramulla Tak told Rising Kashmir that if customers had registered their vehicles before 31 July 2019, then they have to pay as per the previous charges for registration process.
“After 1st August 2019, the customers have to pay extra 9% tax as the motor vehicle tax. If customer fails to pay this tax, his/her vehicle would not be registered anymore,” he said.