8 Jul 2020

Road Tax relief for lockdown period cannot be considered, TN tells HC

The Tamil Nadu government on Tuesday informed the Madras High court that providing road tax exemption to commercial motor vehicles for the lockdown period would cost the state Rs 1,724.43 crore, while making it clear that such a relief cannot be considered. "Since the movement of goods transport vehicles were not banned even by the state or the central government, the question of granting exemption from payment of road tax for April to September could not arise.
Lockdown period has not affected free flow of goods," the state government said.
The government made the submission in response to a plea moved by the Tamil Nadu Lorry Owners Federation seeking tax exemption for the lockdown period.
Disputing the contention of the federation that its members suffered revenue loss during the shutdown period, the state said the government allowed free movement of essential commodities and provided protection for it.
As per the orders of the Union transport ministry, extension of validity of documents related to Motor Vehicles Act was also provided to such vehicles. Validity of licence, permits, fitness certificates and other documents were extended till June 30 considering the lockdown, the authorities said.
Even the grace period for payment of road tax was extended till June 30 without penalty. Therefore, the federation is not justified in seeking complete waiver of the road tax which would cause a huge financial burden on the state revenue, the state contended. COR BN WELCOME BN WELCOME