Central Government Directs States/UTs not to Levy Border Tax for Tourist Vehicles having Valid Permits under All India Tourist Vehicles (Permit) Rules, 2023
The Ministry of Road Transport and Highways, addressing to the The Principal secretaries/Secretaries, Department of Transport lor all StateS/UTS and The Transport Commissioners of all the States/Union Territories has directed not to levy border tax for the tourist vehicles with valid permit under All India Tourist Vehicles (Permit) Rules, 2023. The instruction was issued on August 4, 2023.
The ministry has noticed that some States/UTs are levying taxes in the form of passenger tax/border tax/check post tax etc., from the tourist vehicles plying under All India Tourist Vehicles (Permit) Rules, 2023.
According to the notification, “The Central Government is empowered under sub section (9) & (14) of Section 88 of MV Act, 1988 to make rules for the purpose of promoting tourism, grant permits in respect of tourist vehicles valid for the whole India.
The All-India Tourist Vehicles (Permit) Rules, 2023 were made with the objective of seamless and hassle-free movements of tourist vehicles across the country on the strength of permit issued after making the payment of fee prescribed in the table referred to Rule 3 of All India Tourist Vehicles (Permit) Rules, 2023 without levying any other kind of taxes/fees. It is pertinent to mention here that the permit fee collected under Rule 3 is disbursed among the States and UTS in the in the following month as per the formula prescribed in sub-rule (2) of Rule 3 of All India Tourist Vehicles (Permit) Rules, 2023.”
Considering the mentioned circumstances, the ministry recommended that all States and Union Territories refrain from imposing any additional taxes or fees on tourist vehicles operating with valid permits issued under the All India Tourist Vehicles (Permit) Rules, 2023 throughout the nation.
Lately, the Supreme Court of India has provided temporary relief to a tourist operator in Tamil Nadu, directing the states of Kerala, Tamil Nadu, and Karnataka not to levy any border taxes on vehicles owned by the petitioner, provided they possess a valid permit under the All India Tourist Vehicles (Permit) Rules, 2023.
To Read the full text of the Order CLICK HERE
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