In order to tackle octroi evasion on the part of Mumbaikars, who register their vehicles outside Brihanmumbai Municipal Corporation-administered area, the civic body has decided to undertake a public awareness drive. Payment of octroi is a must for registration of a vehicle with the regional transport office (RTO).
The drive is expected to begin in a month. During the campaign, the corporation plans to reach out to housing societies with posters, appealing vehicle owners to pay 4.5 per cent tax (of the vehicle's price) in the form of octroi to the BMC. The civic body also plans to impose hefty penalty on defaulters after a grace period of about two to three months.
The move comes in the wake of reports that a lot of vehicle are being registered at the RTO in Navi Mumbai, where there is no octroi and one is required to pay a cess of only 1 per cent of the total cost. Octroi is the major revenue source for the civic body.
For instance, to register a vehicle worth Rs10 lakh in Mumbai, the owner is required to pay Rs45,000 towards octroi. The cost comes down to Rs10,000 if the car is registered in Navi Mumbai.
"We want to warn tax evaders that if they are using such vehicles within BMC-limit, they will have to pay the specified 4.5 per cent tax and no matter where the vehicle is registered from," a senior civic official said.
The corporation is also planning to run a programme for such motorists for two months. During this period, they won't have to pay penalty.
"Our personnel will also be on field to inspect if a vehicle owner has registered vehicle outside city limit and evaded tax. We will hold two-three rounds of inspection to ensure we catch only those who are at fault. If motorists still evade payment, we will penalise them," he added.
The BMC has said that in case vehicle owners fail to pay octroi, it will levy penalty amounting to 10 per cent of vehicle cost. In case of car costing Rs10 lakh, the fine will work out to Rs1 lakh.
Meanwhile, the civic body has made it mandatory for dealers to make payment of octroi online (https://www.mcgmoctroi.com) for new cars and two-wheelers from July 1. The official added, "We found that many agents appointed by dealers would produce bogus octroi receipt while approaching the Mumbai RTO. The online system will eliminate such malpractice. This will also help dealers too as it will do away with the role agents and they won't have to pay commission."
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