HYDERABAD: Ramping up vigil on vehicles registered in other states, the Transport Department has successfully collected approximately Rs 47 crore in lifetime taxes and penalties from violators since April this year.
In April, Rs 12 crore was collected, followed by Rs 15 crore and Rs 18 crore in May and June, respectively. During the first half of July, officials confiscated 172 vehicles, resulting in the collection of Rs 1.95 crore in tax. The majority of this amount, Rs 1.65 crore, came from lifetime tax collection, while Rs 25.50 lakh was generated from the penalty, known as the compounding fee, imposed on the inspected vehicles during checks.
Usually, a vehicle registered in one state but operating on the roads of another state is subject to lifetime tax and must be registered with the Regional Transport Office (RTO) within one month of the owner obtaining a no objection certificate (NOC) from the state where the vehicle was originally registered. In the state of Telangana, lifetime tax is calculated at a rate of 20% based on the showroom invoice price of the vehicle.
A senior official told TNIE, “Once the vehicle owner receives the NOC from their native RTO authority, it is reflected on the MoRTH’s Vahan portal. However, failing to obtain the NOC and having the vehicle confiscated during an inspection results in a 2% penalty calculated based on the lifetime tax of the vehicle. Conversely, if the NOC is obtained but the tax remains unpaid, the tax due is calculated from the month of NOC issuance to the current month.”
“In addition to collecting life tax, the special drive aims to curb illegal activities involving such vehicles. Often, owners lend vehicles to drivers and neglect regular follow-ups,” CP Venkateshwar Rao, Regional Transport Officer, told TNIE.