Kochi: The Kerala Motor Vehicles Department has launched a drive against those who register their luxury vehicles in other states and union territories like Puducherry to evade tax.
“It came to our notice that increasing numbers of vehicles are being registered outside the state using forged documents. Such acts have led to huge revenue loss to the state exchequer. The commissioner has directed us to inspect the vehicles registered outside the state,” said deputy transport commissioner E.S. James.
As part of the drive, the MVD is compiling a list of vehicles. “The majority of vehicles are cars. So far we’ve identified 200 such vehicles across the state. Initially, we’ll ask them to re-register in the state. This way they can get refund from those RTOs and the state its revenue,” the officer said.
Strict action, including hefty penalties, would be levied if the owners failed to heed the direction, he said. There is a huge difference in taxes for luxury vehicles in Kerala and Puducherry. For instance, the Puducherry RTO charges a flat 55, 000 for vehicles above 20 lakh while they have to cough up nearly 4 lakh towards tax here.
“Often registration there is obtained by providing false information or by submitting false documents like residential proof. Also, to register a vehicle in Puducherry, one need not have a permanent address. The Pondy registration book features both temporary and permanent address of the vehicle owner,” said an MVD official.
