Drop move for uniform vehicle tax: Kerala

Kerala has asked the Centre to withdraw a directive to the State Chief Secretary to implement uniform motor vehicle tax based on an interim report of the Group of Ministers (GOM) .

“The proposal to introduce a uniform motor vehicle tax system across the States is without proper deliberations, especially in the wake of introduction of GST, which is not fruitful or beneficial to the State of Kerala as on today,” Transport Minister A.K. Saseendran said in a letter to Union Minister for Road Transport and Highways (MoRTH) Nitin Gadkari on Thursday.

The Minister said he had noted dissent at the GOM held on April 19 at Guwahati.

“Unfortunately, it has been noted that the group was of the unanimous opinion that there is an urgent need to harmonise the rates of road tax across the States and it is required to send a message of One Nation – One Tax. This is not correct.”

Raising objections to the move, the Minister said only the State legislature was competent to make laws regarding taxation of vehicles. Hence, any attempt on the part of MoRTH to legislate on motor vehicle taxes and thereby harmonise tax rates was “unconstitutional”.

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