Bill moots more tax on cabs

CHENNAI: The State government on Monday introduced a Bill to provide for increasing the tax rates on tourist taxis, maxi cabs, private service vehicles, spare stage carriers, construction equipment vehicles and contract carriers from other states. Introducing the Bill in the State Assembly, Transport Minister V Senthil Balaji said contract carriages from other states use the road more intensively than those in Tamil Nadu. Since the neighbouring states collect higher tax from vehicles of other states while entering their state, it was decided to impose a higher rate of tax for vehicles from outside states. At present, the tax collected from other state vehicles is on par with that of corresponding vehicles in Tamil Nadu.Moving the Bill, the Minister said it envisages levying life-time tax for tourist motor cabs as similar makes of vehicles, when used as personal vehicles, were levied life-time tax.The Bill said there were difficulties in collecting quarterly tax based on the number of seats for tourist maxi cabs. They have different makes and have different floor areas and different number of seats. ‘Hence it has been decided to levy life time tax for new vehicles having a floor area of more than six sq m and quarterly tax based on the floor area for already registered vehicles,’ the Bill added.Following the significant increase in use of construction equipment vehicles like excavator, road scrappers and cranes, the present annual tax levied for such vehicles was minimal. ‘Hence it has been decided to levy an annual tax of `10,000 on such vehicles,’ the Bill said.The Bill also provides for imposition of quarterly tax on private service vehicles on a per seat basis by classifying them as AC and non-AC.‘Use of private service vehicles for carrying persons in connection with trade or business of the owner is increasing nowadays and tax levied on them at present is lesser than ordinary stage carriages,’ the Bill said.The government also decided to levy separate tax for reserve stage carriers or spare buses which were used on special occasions using special permit as contract carriages.