Team Herald
PANJIM: The Comptroller Auditor General (CAG) of India has revealed that social institutions that were exempted from paying road tax on their vehicles, purchased high-end luxury cars causing a loss to the State exchequer.
“We observed that Director of Transport in exercise of powers conferred by Rule 22 of Motor Vehicle Rules issued notification to two institutions. The total road tax exempted to these institutions for purchase of new luxury motor cars was Rs 9.87 lakh,” the audit report mentioned.
The institutions – Dominic and Joan Ministries and Padmanabh Shishya Sampradaya Trust – had each purchased different variants of Mercedez Benz cars.
Referring to both the societies, which enjoyed this benefit for their luxury cars, the audit noted, “The institutions had paid Rs 30,000 and Rs 10,000 respectively for obtaining the choice registration number for their vehicle.”
CAG has said that the Motor Vehicle Tax Rules provides for exemption from payment of tax for some charitable, cultural, welfare or philanthropic institutions. “Under Rule 22 (1) the motor vehicles owned by such institutions as notified by the government are exempted from the payment of road tax. The government, however, has not issued any notification under the Rule listing eligible charitable institutions for allowing such exemption under the Rules.”
“It has also not specified categories of vehicles exempted for such institutions,” the report mentions.
The CAG pointed out that in the absence of such notification, the Director of Transport has been issuing notifications on a case-to-case basis by granting exemptions to various charitable institutions.
Castigating the State government for allowing the exemption on high-end cars, the CAG said, “The exemption granted by DoT to the trusts/societies which could afford to purchase luxury vehicles and pay for choice registration numbers, defeated the intention of the rules.”
