Taxi operators are in a quandary as they have not been exempted from paying road tax, although most of them are out of business in the wake of the pandemic-induced slowdown.
The government had exempted buses which operate as stage/ contract carriages and also school buses from paying the quarterly tax amount, irrespective of whether they operated service or not.
Most of those who did not operate service for months on end due to the lockdown had submitted G-form to the Motor Vehicles Department (MVD), which exempt them from paying tax, provided they did not operate trips.
Highlighting the plight of taxi and tour operators, C.P. Ajith Kumar, owner of a city based travels, said vehicles in the taxi segment that had seven seats ended up paying ₹3,500 as road tax every quarter, whether they operated service or not. The amount was higher for large vehicles.
He said at least 50% of taxi drivers had invested in their vehicles. They were doubly affected as they had to pay EMI for their vehicle and also road tax and other mandatory payments, even as they were devoid of any source of revenue.
MVD sources said the taxi/travel sector had been hit by the slowdown. “The operators can choose to get a refund of the tax they paid, if they adduce proof that the vehicle did not operate. But it is a cumbersome process and they will have to repeatedly visit three government offices, including the treasury. Subsequently, only fleet operators chose the option, with individual owners resigned to their fate,” they said.
