Thursday, June 20, 2024
India

States told not to levy tax on entry of vehicles with all-India permit

NEW DELHI, AUGUST 17: The Ministry of Road Transport and Highways (MoRTH) has instructed States and Union Territories (UTs) not to charge fees or taxes for tourist vehicles having valid all Indian tourist permits (AITPs) from entering their jurisdiction.
The Ministry has written to all Transport Secretaries and Transport Commissioners in States and UTs in this regard after it noticed that some States and UTs levy tax on the vehicles being used to ferry tourists.
“All States and UTs are advised not to levy any other kind of taxes/fees from the tourist vehicles plying under the strength of valid permit issued under All India Tourist Vehicles (Permit) Rules, 2023 across the country”, read the letter.
The communiqué, sent earlier this month, further pointed out the Central Government is empowered to make rules for the purpose of promoting tourism and grant permits in respect of tourist vehicles valid across the country under the Motor Vehicle (MV) Act 1988 and collect permit fee as per the provisions of All India Tourist Vehicles (Permit) Rules, 2023.
“The All India Tourist Vehicles (Permit) Rules, 2023 were made with the objective of seamless and hassle-free movements of tourist vehicles across the country on the strength of permit issued after making the payment of a fee prescribed in the table referred to Rule 3 of All India Tourist Vehicles (Permit) Rules, 2023 without levying any other kind of taxes/ fees. It is pertinent to mention here that the permit fee collected under Rule 3 is disbursed among the States and UTs in the following month as per the formula prescribed”, the Ministry’s letter also stated.
According to the Ministry’s portal, there are over 91,000 AITPs and 6.28 authorisations in the country. The permit is issued by the transport authority to enable a tourist vehicle operator or owner to ply tourist vehicles throughout the territory of India without payment of taxes or fees levied by the State or UTs through which it plies.
The Government also collects a fee for all India ‘authorisation’, which is also granted by the transport authority subject to the payment of taxes or fees, if any, levied by the State or Union Territory through which it plies.
(Courtesy: TNIE)

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