The BMC has decided to crack down on those who register their vehicles outside Mumbai, but use them in the city to evade paying tax to the civic body.
If you have registered your vehicle outside Brihanmumbai Municipal Corporation (BMC)-administered area, but are using the same within the city, then do not forget to pay octroi for the same.
The BMC has decided to crack down on those who register their vehicles outside Mumbai, but use them in the city to evade paying tax to the civic body.
Launching a door-to-door initiative to track cases of octroi evasion, the corporation has started sending out letters in this regard to housing societies asking citizens to submit details of their vehicles.
On receiving the information sought, those found with vehicles registered outside Mumbai, but living here will be then asked to cough up the octroi of 4.5%.
"It has been observed that people usually register vehicles outside Mumbai and use it within the BMC-administered area. This ensures less expense for buyers but it is the civic body which suffers losses on revenue front. So, we are asking owners to furnish details of vehicles," a senior civic official said, requesting not to be named.
Many car owners typically register their vehicles in Navi Mumbai, where instead of octroi, only 1% cess is levied, saving motorists 3.5% of the cost of the vehicle. For a premium car of Rs10 lakh, this works out to saving Rs35,000.
The official said the actual action against tax evaders will be taken on receiving details.
"At present, there is no data available on the number of such tax evaders. Therefore, once we get inputs in this connection, we will crack down on tax evaders," the official added.
The municipal corporation has warned failure in payment of tax will invite legal action from the civic body.
"The BMC can charge 10% cost of the vehicle as fine for non-payment of octroi as per section 478 of the MMC Act, 1888," the officials said. For a car of Rs10 lakh, this would mean a penalty of Rs1 lakh.
City administrators feel the BMC will also be able to throw light on illegal practices, if any. One such instance is several vehicles being registered on the same address.
Mumbaikars who have registered their cars outside the city are worried.
"Though I live in Andheri, I have registered my car at my office address in Navi Mumbai, which is not illegal. Though the BMC is planning to crack down on evasions, neither is it physically possible for the civic officials to go from door to door across the city nor does it make sense for someone who has already paid the taxes somewhere else in the state to pay again to the BMC," said Manish Shah, who owns a manufacturing unit in Airoli.
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