Hyderabad: Road Transport Authorities are refusing to register vehicles if owners do not pay life tax on the total cost of the vehicle instead of the discounted price offered by the dealer.
Hundreds of car owners were in for a shock when they were sent back from RTA offices. Dealers of Mercedes, Audi and other luxury cars in the city meanwhile are crying foul over RTA’s “high-handedness”, stating that it is a competitive market and they have to offer discounts. They have urged RTA authorities not to harass the customers and accept tax on the invoice value.
Mr Mandeep Singh, who bought an Audi on March 31, has not been able to get a permanent registration number for his car. He had paid the dealer Rs 5.27 lakh towards life tax for his car, which cost him Rs 33 lakh. “I was told that I would have to pay life tax on the actual cost of the vehicle and not the discounted rate given by the dealer. The RTA officials have the maximum retail price of the cars,” he said.
IT consultant Mr K. Prakash Rao (name changed) has purchased a Honda Jazz and was offered a discount as the vehicle was of a 2015-model. “Cars that remain unsold are offered at high discount rates. But when I went to the RTA office, the agent told me I had to pay more life tax. My joy of getting a good discount at the dealer’s was short-lived. How can the government come up with such decisions without properly informing the citizens?” he asked.
Mr Yashwant Jhabak, a dealer of Mercedes and other cars in Madhapur at Hitec City said it was a discount-driven market. “Not all cars are sold at MRP. Rebate is more if it is a display vehicle or previous year’s model. The RTA wants life tax on the cost of vehicle and not on invoice value. It is bad for business.”
RTA officials said it was up to the dealers to offer discounts, but life tax had to be paid on the vehicle MRP. “Why should the government lose revenue because of their business model?” an official asked.
