Loading ...
Sorry, an error occurred while loading the content.

BMC to recover cess from 75,000 city vehicle owners

Expand Messages
  • karmayog.org - sheetal
    BMC to recover cess from 75,000 city vehicle owners While Mumbai charges 5.5% cess, it is just one per cent in Navi Mumbai and Thane. Following BMC s
    Message 1 of 1 , Feb 1, 2010
    • 0 Attachment
      BMC to recover cess from 75,000 city vehicle owners
      While Mumbai charges 5.5% cess, it is just one per cent in Navi Mumbai and Thane. Following BMC’s crackdown, car owners like Sachin Tendulkar and Governor of Tripura Dr D Y Patil who have been sent notices, will now have to cough up the difference......Sudhir Suryawanshi
       
      Over 75,000 car owners in Mumbai who, like Sachin Tendulkar, had registered their vehicles in Navi Mumbai and Thane to save on cess, will now have to pay the difference to the Brihanmumbai Municipal Corporation (BMC) as a penalty for evading city taxes.
       
      With the BMC having ordered an inquiry into this large-scale evasion of cess, the owners will be forced to pay the amount actually payable in Mumbai.
       
      Since Mumbai charges cess at the rate of 5.5 per cent of the vehicle cost, compared to only one per cent charged in Navi Mumbai and Thane, vehicle owners will have to cough up the difference of 4.5 per cent.
       
      The Navi Mumbai Municipal Corporation (NMMC) had recently served notices to Tendulkar, singer-composer Shankar Mahadevan and Governor of Tripura Dr D Y Patil for not paying their cess on the luxury vehicles registered in Navi Mumbai.
       
      Following this, the BMC asked its vigilance department to investigate how many vehicle owners living in Mumbai had registered their vehicles in Navi Mumbai to escape Mumbai’s heavy cess. The investigations revealed that around 75,000 vehicles used in Mumbai are registered outside the city.
       
      A senior civic official said that BMC’s vigilance department has now been asked to identify all such vehicle owners. “We have asked them to inquire into the cases involving Tendulkar and Patil who have been sent notices for not paying cess on their luxury vehicles. The vigilance team will prepare a detailed report in a month, and notices will be served to all such owners,” said N A Pathan, chief of BMC's octroi and property tax assessment department.
       
      Senior BMC officials revealed that in order to save money, many Mumbai residents buy cars from Navi Mumbai and Thane region or, in some cases, even import vehicles but get them registered in Navi Mumbai. “This is a well-known ploy, due to which BMC loses a lot of revenue. But now, we have decided to crack down on such car owners,” an official said.
       
      Civic officials, however, are not quite certain of exactly how much revenue will be recovered by this move. “The loss is more in case of imported vehicles, many of which cost around Rs 1 crore. Accordingly, the recovery in such cases will be high. We will approach the directorate of revenue intelligence for details of imported cars too,” an official said. He added that BMC also plans to set up a special cell to recover the revenue, and also to pursue bogus registration cases.
       
      President of Western India Automobile Association Nitin Dossa, however, suggested that instead of recovering the high octroi from car owners, the authorities should
       
      recover it from the dealers. “The owners are not responsible for not paying octroi. The Gujarat government abolished octroi, and we should emulate them. If the BMC continues to charge high octroi, then nobody will buy cars in the city. I strongly oppose this move,” said Dossa.
       
       
       
    Your message has been successfully submitted and would be delivered to recipients shortly.