Different states in India have different tax structures when it comes to the registration of vehicles. It leads to complications and harassment faced by the consumers when moving to a different city. After the rollout of the goods and service tax (GST), there is a possibility of India getting a single road tax structure throughout the country.
The concept of “One Nation, One Tax’ will be presented by the union government soon. Under the new law, it will also become easier to register the vehicle. Currently, only local Regional Transport Office (RTO) can register a new vehicle. With the new proposed bill, car dealerships will be able to register the vehicles without visiting the RTOs.
Government is planning to amend the Motor Vehicles Act, 1988 with the Motor Vehicles (Amendment) Act, 2016 and it will be re-introduced in the Parliament during the winter session. The bill has already passed the Lok Sabha voting and now it will be presented in the Rajya Sabha for the final discussion.
The new motor vehicles act will enable people, especially luxury car buyers to escape the huge tax structures that a few states impose on the registration of the vehicles currently.
There may be an extreme change done to the way RTOs function currently as there are plans to privatise the driving license issuing too. As per the government, the privatisation will create more entrepreneurs and will give create more job opportunities in the country. There are also plans to remove the RTOs and put a more efficient function body in place of that. Nitin Gadkari, the union minister of road and transport said that there are plans to make the function of RTOs less human intrusive and more efficient.
Currently, RTOs hold the role of issuing the driving license for private and commercial purposes, registration number, car fitness checking and more such things.