LBT hits revenues of Dy RTO in Vashi, achieves only 54% of the target in eight months.
Local body tax (LBT) has affected the revenues of deputy Regional Transport Office (RTO) in Vashi, as vehicle owners are approaching Dy RTO in Panvel for registering their new vehicles.
Vehicle owners have to pay 3% LBT, while registering their vehicles in Dy RTO in Vashi.
The revenues of the Dy RTO has dipped drastically in the current fiscal as it has achieved only 54% of its revenue target in the first eight months of the fiscal year 2013-14.
Around 29% fewer cars have been registered during the corresponding period of last year.
Up to December in 2013-14, the Vashi RTO garnered Rs123 crore revenue, lesser than its Rs224 crore target. In 2012-13, in the same period, the RTO collected Rs144 crore revenue. There has been around 15% drop in revenue in the current fiscal.
“Three per cent LBT doesn’t matter much for low-cost cars, but for a high-end or a luxury car, it affects a lot to buyers’ budget,” a RTO official.
Dy RTO Vashi Sanjay Dhyaygude said, “If a vehicle is registered at Vashi office the owner has to pay 3% LBT.” However, there is no LBT applicable if the vehicle is registered with the Dy RTO Panvel.
This has affected the revenue generation of Vashi RTO while it has helped Dy RTO Panvel meet the target revenue.
The Panvel RTO has achieved about 82% revenue target in the first eight months the current fiscal. The Panvel RTO has generated Rs228 crore revenue while the target is Rs279 crore.
In the Navi Mumbai Municipal Corporation (NMMC) jurisdiction, the LBT is charged at the rate of three while there is no LBT in Panvel.
According to a Dy RTO Panvel official, they have been getting good response even during slow down in the economy.
He adds, “Even if a vehicle has been bought in NMMC’s jurisdiction, it can be registered at Panvel RTO. One can do it by submitting address proof of a rented house”
Till December, the total turn out for registration was 6,133 while in 2012-13 it was 8,565.
The total motorbike registration till December 2013-14 is 11,674 while in 2012-13 it was 12,448.
LBT woes
Around 29% fewer cars have been registered during the corresponding period of last year
Till December in 2013-14, the Vashi RTO garnered Rs123 crore revenue, lesser than its Rs224 crore target. In 2012-13, in the same period, the RTO collected Rs144 crore revenue.
Panvel RTO has managed to achieve about 82% revenue target in the first eight months of the current fiscal.
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