Govt loses Rs300 cr on vehicle tax

The Comptroller and Auditor General (CAG) of India has observed in the annual revenue receipts report of the government of Gujarat for 2008 that because of non-realisation of motor vehicle tax (MVT), the state government lost a total of Rs299.92 crore.

The CAG observed that the audit analysis of growth trends revealed that growth in lump sum of motor vehicle tax applicable to light-motor vehicles was static. Also, in other segments of the motor vehicle tax, the growth in vehicular traffic and collections were disconnected. The audit checks revealed a short collection of various kinds of fees totalling Rs16.75 crore. Besides a shortfall in collections, an absence of a structure mechanism to identify cases requiring fitness certificates, renewal of permits and licenses of motor driving schools etc had road safety implications.

The CAG further observed that the internal control procedures in the Gujarat motor vehicle department were weak, thus having significant revenue implications.