Motorists to pay more in towing charges

With the implementation of the Goods and Service Tax (GST) from July 1, motorists in the city will have to pay an additional three per cent tax to release their cars which have been towed away for violation of parking rules. The Mumbai Traffic Police have started levying GST at 18 per cent on towing charges that motorists are required to pay.

According to the police, they have started charging the GST on towing charges as it is a service provided by the towing company. Earlier, 15 per cent Service Tax was applicable on the service, which is now being replaced by 9 per cent State GST and 9 per cent Central GST.

"No tax would be applicable on e-challans for parking violations, but the towing company which was already charging the service tax would replace it with GST," said Ashok Dudhe, Deputy Commissioner of Police.

Motorists are unhappy as they were already paying towing charges over and above the fine for parking violations.

"My car was towed from Goregaon area. When I went to collect the car, they charged 18 per cent GST instead of 15 per cent tax. We are already paying extra money than the fine of the violation. It's too much," said Kaushal Bhai Patel, resident of Dahisar.