The Daman and Diu Motor Vehicles Tax (Amendment) Regulation, 2010

The Daman and Diu Motor Vehicles Tax (Amendment) Regulation, 2010

The Union Cabinet today approved the promulgation of the Daman and Diu Motor Vehicles Tax (Amendment) Regulation, 2010. The Regulation provides for levying one-time motor vehicle tax on personalised non-transport vehicles. It also provides for levying a cess, namely, green tax on old vehicles of 15 years and above, in addition to tax levied under the Act at the time of renewal of registration. The proposed Act also has provision for increasing the upper limits of the rate of taxation on transport vehicles keeping in line with the neighbouring states and as a resource mobilisation initiative.

An increase in revenue collection to the extent of Rs.221 lakh per annum is expected. This will benefit the public who have personal motor vehicles as they would pay a one time vehicle tax.

The proposed amendments would result in reducing the workload in the offices of the Transport Department of the Union Territory Administration and mitigating the inconvenience caused by the annual collection of road tax to the vehicle owners. It will also bring parity with the neighbouring States of Gujarat and Maharashtra, which have already introduced the system of payment of lump sum tax on personalized vehicles.

Background: In the Union territory of Daman and Diu, the road tax on both transport and non-transport is being levied annually in terms of the provisions of the Goa, Daman and Diu Motor Vehicles Tax Act, 1974, as in force in the Union Territory of Daman and Diu.