As the logjam between the Municipal Corporation, toll tax collector and the Delhi Government continues, uncertainty lingers over environment tax collection from commercial vehicles entering the Capital.
Since Sunday thousands of trucks entered the city through 127 entry points without having to pay the “environment tax” imposed by the Supreme Court as the municipal corporation failed to implement the order aimed at improving the fast deteriorating air quality. Around 50,000 commercial vehicles, mostly trucks, enter Delhi every day.
SMYR Consortium, the firm that collects toll taxes on behalf of the South Delhi Municipal Corporation (SDMC) has said lack of clear policy is a major deterrent towards tax collection, thus demanding clarity over a issues like security of staff, extra free, tax policy and traffic chaos before taking further decision.
“We were supposed to begin tax collection from November 1 as per Supreme Court directions, but that could not materialise as there was no comprehensive plan in place. We had written a letter to the SDMC Commissioner highlighting the 11 points that we need a clarification upon. The SDMC further sent the letter to Transport and Environment department of the Delhi Government but no reply has been given to us. Therefore the inflow of vehicles to the Capital shall continue till the time we do not get a proper response,” said Kishore Agarwal, a partner in SMYR Consortium llP.
The SDMC said it has engaged a contractor to collect the Environment Compensation Charge (ECC)— Rs700 on small and medium trucks and Rs1,300 on large trucks — but the private entity could not do so due to lack of infrastructure.
Among other things, the firm is concerned about the fear of violence that may occur during tax collection. “They want security of staff, extra free, tax policy and traffic chaos. We are not authorised to address these issues. Thus we have referred the letter to the Delhi Government. We have nothing to do in this matter anymore. Either the Delhi Government will respond to SMYR consortium llP or the court will order accordingly,” said Radhe Shyam Sharma, Standing Committee Chairperson of SDMC.
The SDMC had approached the apex court earlier when the concessionaire refused to collect the additional taxes stating that it violates the contract. “In the letter to the SDMC, the concessionaire had mentioned that according to toll tax agreement between the SDMC and SMYR Consortium llP, the latter is not contractually liable to collect ECC (Environment Compensation Charge), but is supposed to do so after the SC orders,” said Sharma.
Agarwal added that the toll employees fear violence. “Our employees refused to comply when we asked about the collection of additional taxes. While there is a paucity of workforce, criminal cases can be registered against us for loss of revenue. They threatened to quit the job as they are not equipped with to collect the green tax.”
Meanwhile, the civic body also expressed interest a share from revenue collected via green tax. The corporation claimed that it will have to bear the losses of the concessionaire; therefore the revenue should also be shared. Sharma said the trucks will avoid entry to Delhi due to the imposition of additional tax. It will increase the liability of the staff collecting it, thus causing loss to the civic body.