With the slowdown of automobile sector, the State Government is facing a tough time as revenue generation from taxes from motor vehicles is slipping continuously.
Though the slowdown in the sector is a national phenomenon, the State Government which requires more revenue to fund pro people programme is concerned over its consequences.
While the State Government had set a target of collecting Rs 2,025 crore from taxes on vehicles, the collection up to August 31 was a mere Rs 618.13 crore. The collection has registered minus 12-per cent growth as sales of the vehicles are sinking.
The number of registration of new vehicles touched a low of 25, 457 up to September this year compared to 53, 478 in September 2018. More than a 50-per cent fall in registration of vehicle has caused concern for the State Government, said sources in Finance Department.
While in the month of April 2018, registration of new vehicles touched a high of 86,886, it came down to 74,825 in April 2019. In May 2018, the registration was 80,065, which went down to 65,972 in May 2019.
In June 2018, it was 73,765 and in June 2019, it slumped to 64,064. In July 2018, the registration was 71, 753 and in July 2019, it went down to 53,645.
Sales and registration of vehicles have been going down drastically since April 2018. This has resulted in lower MV Tax collection, which was much better in 2017 and 2018.
MV Tax collection by August 31 2018 was Rs 699.82 crore, which went down by more than Rs 81 crore. Trends show that sales of vehicles and registration of new vehicles are going down and down; and in the coming months, the situation is likely to worsen further, officials admit.