RTO cracks down on tax evaders, collects Rs 3 crore

Mar 23, 2013, 08:59 IST | Shashank Rao

Officials from Wadala and Andheri RTO confiscate high-end cars whose owners evaded tax by registering the vehicles in other states where motor tax is negligible

Just days after cracking the whip on owners of high-end cars, who get their vehicles registered in other states to save the motor tax, officials of the Regional Transport Offices (RTOs) have collected almost Rs 3 crore by confiscating high-end vehicles. Several of these cars are currently parked at two RTO compounds in the city.

Time to pay: Some of the high-end cars confiscated by officials of the Wadala RTO parked at its compound in Worli. Pic/Satyajit Desai

Since the beginning of this month, officials of the Wadala RTO confiscated about 30 imported vehicles, ranging between Rs 75 lakh and Rs 1.5 crore. The primary targets of RTO officials are those owners who have registered their vehicles in other states even though they reside in the city.

An RTO official said, “These vehicles are registered in other states where the motor tax is negligible. In order to evade tax, dealers suggest buyers to register their high-end vehicles in other states.”

Explaining how the owners bend the law, the RTO official said, “Dealers suggest buyers to get the vehicles registered from states like Chandigarh, Jharkhand or Haryana, where the motor vehicle tax is less.”

Similarly, officials of the Andheri RTO also confiscated a few high-end vehicles whose owners have evaded tax.

“Over 20 such vehicles have been confiscated until now,” said an official from the Andheri RTO.

Drop in sales
The number of imported cars registered in the city has witnessed a drop by nearly 10 per cent. While the number stood at 343 in 2011, it came down to 310 in 2012.

Did you know?
Owners of high-end cars are charged at least 20% of the vehicle’s cost as one-time vehicle tax in the city  

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