Rs 1 lakh as vehicle tax alone - Now, a sudden drop in the registrations of new vehicles in Chennai!!
Posted on: 22/Nov/2023 9:30:12 AM
The number of vehicle registrations in Chennai and across TN has come down now. This is mainly due to the increase in the vehicle registration tax in the state. This has caught the attention of many now. More than 3.3 crores use their own vehicles in the state of TN.
It must be recalled that on 11th October the government announced that a new tax regime would come into effect from the first week of November. The important piece of information is that between that announcement and 8th November, the vehicle registrations at RTOs in TN recorded a new high of 5700 new vehicles on the road every day. The bitter truth is that after the increase in the vehicle tax the number of registrations has reduced to 4400 approximately. This was revealed by official data.
In October, the number of registrations was 3300 in Chennai but now it has dropped to just 800. According to Mr. S. Rajvel, state chairperson of Federation of Automobile Dealer Association or FADA, it was clear that the happiness was reduced in the festival season. He was of the view that the government must reduce the tax or else the slump in vehicle sales would continue.
Now, the overall cost of new vehicles have increased by 1% and people pay Rs 1 lakh as tax alone for purchasing new commercial vehicles. The persons who buy new vehicles continue to pay high tax amounts despite the showrooms providing them with discounts etc. This is due to the fact that the govt calculates tax amount based on the rate fixed by the manufacturer in the VAHAN portal.
Mr. S. Rajvel explained that in TN vehicle tax was collected based on the ex- showroom prices that included 28% of GST. As a result, the new bikes and cars became more expensive. He wanted the base vehicle rate to be used for calculating vehicle tax amount just like in Puducherry.
It was later brought to light by Mr. KP. Subramanian, former professor from Anna University that in countries such as Singapore etc buying a new car was expensive and through auctions only cars were purchased.
