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Chandigarh Preparations have started for imposition of congestion tax on transport vehicles outside A year ago, MP Kiran Khair suggested imposing this tax on foreign vehicles. Now the State Transport Authority has prepared its proposal. Awaiting Ministry’s approval. Recently, the administration sent a DO letter to the Joint Secretary, Ministry of Road Transport and Highways after several reminders.
On June 1, 2022, a meeting of the Standing Committee of the Administrative Advisory Council was held under the chairmanship of MP Kiran Khair. In this, for the first time, MP Kiran Khair suggested imposing congestion tax on transport vehicles coming from outside. It was claimed that this would improve the congestion problem in the city along with increasing the revenue.
Before implementing this tax, the administration needs to repeal the Passenger and Goods Taxation Act (Passenger and Goods Taxation Act), so a proposal was sent to the Union Home Ministry to repeal this Act. A reminder was sent on 17 August 2022 but no response was received from the Ministry. Meanwhile, the standing committee meeting was held again on 1 June 2023. The members expressed displeasure, following which the Joint Secretary, Department of Transport, sent a DO letter to the Joint Secretary, Ministry of Road Transport and Highways on 12 July 2023 seeking early approval.
The Punjab Passenger and Goods Taxation Act-1992 was enacted in Chandigarh. The Punjab government abolished this tax many years ago and added it to the motor vehicle tax. Apart from this, the Passenger and Goods Taxation Act has been abolished in many other states of the country, but it is still in force in Chandigarh, due to which congestion tax or motor vehicle tax cannot be levied on external transport vehicles.
Due to this, a proposal has been sent to the ministry to repeal this act in the administration. Here, the State Transport Authority has come up with a proposal to implement the Congestion Tax or also known as Motor Vehicle Tax. Officials say that it will be implemented as soon as the approval is received from the ministry.
In this way the tax will have to be paid
Congestion tax has to be paid on vehicles which are registered outside Chandigarh and come to Chandigarh in connection with business. This tax will be deposited online. Vehicle owners will be able to deposit one day’s entry, three months’, six months’ or one year’s entry tax depending on the vehicle category. This tax is applicable in many states. Let us tell you that when this proposal came last year, there was a lot of opposition to it. Many leaders of Punjab even called it an attack on the rights of Punjab.
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