Telangana government has fulfilled one more key poll promise. Before the elections, Telangana Rashtra Samiti has promised to abolish Vehicle Tax for Autos, Tractors, Trolleys etc. On Thursday, the government had issued a G.O. cancelling the vehicle tax for the above vehicles. The vehicles owners have been not paying taxes since TRS won the elections in last May.
There are arrears of 76 Crores for these kind of vehicles since the new state is formed. The government has cancelled all those arrears with the immediate effect. This new policy is expected to reduce the income of Telangana government by 225 Crores per year. But it is a sop given by TRS to please the Auto Rickshaw owners and agriculture community who owns the tractors.
However there are also demands that government should return the vehicle taxes for those who all ready paid the taxes but the government did not announce any directive regarding it. It is said that the government is planning to consider all transport vehicles entering into the state from AP shall be treated as other state vehicles and are liable to pay tax under the provisions of Telangana Motor Vehicles Taxation Act, 1963. Government feels such move will make sure this 225 Crores loss is covered.
However the issue is currently in the jurisdiction of the high court and the Governor on June 1, 2014 with regard to levy of Motor Vehicle Tax (MTV). On June 1, the Governor of erstwhile state of AP passed an order vide GO Ms No 43 stating that "the quarterly tax paid for any quarter up to March 31, 2015 in any of the successor t states shall be deemed to have t been paid for both the successor states and thereafter new governments will decide."
