Introduction: The Ministry of Road Transport and Highways, Government of India, through its MVL Section, issued a significant advisory on the 4th of August, 2023. This advisory addresses the levy of fees, passenger taxes, border taxes, and related charges imposed on tourist vehicles operating under the All India Tourist Vehicles (Permit) Rules, 2023. The directive seeks to clarify the rules and regulations governing such vehicles.
Background and Empowerment: The Ministry emphasizes that it has noticed certain States and Union Territories imposing taxes, such as passenger tax, border tax, and check post tax, on tourist vehicles that operate under the All India Tourist Vehicles (Permit) Rules, 2023. To provide context, the Central Government is granted authority under subsections (9) and (14) of Section 88 of the Motor Vehicles Act, 1988. This authority enables the Central Government to create rules that promote tourism and issue permits for tourist vehicles that are valid throughout India.
Objective of All India Tourist Vehicles (Permit) Rules, 2023: The All India Tourist Vehicles (Permit) Rules, 2023 were established to facilitate the smooth and trouble-free movement of tourist vehicles across the nation. These rules allow tourist vehicles to operate on permits issued after payment of the prescribed fees mentioned in the associated table, as per Rule 3 of the All India Tourist Vehicles (Permit) Rules, 2023. Importantly, these rules expressly prohibit the imposition of additional taxes or fees. The permit fees collected under Rule 3 are then distributed among the States and Union Territories in the following month, following a prescribed formula mentioned in sub-rule (2) of Rule 3 of the All India Tourist Vehicles (Permit) Rules, 2023.
Advisory to States and UTs: In light of these provisions and objectives, the advisory directs all States and Union Territories not to impose any other form of taxes or fees on tourist vehicles operating under valid permits issued under the All India Tourist Vehicles (Permit) Rules, 2023, anywhere in the country.
Conclusion: The advisory issued by the Ministry of Road Transport and Highways serves to clarify the regulations surrounding the taxation of tourist vehicles under the All India Tourist Vehicles (Permit) Rules, 2023. It emphasizes that the permit fees collected under these rules are sufficient and that additional taxes or fees should not be imposed. This advisory aims to promote hassle-free travel for tourists across India while ensuring compliance with relevant regulations.
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RT-11036/69/2023-MVL
Government of India
Ministry of Road Transport and Highways
(MVL Section)
Transport Bhawan, 1, Parliament Street, New Delhi-110001
Dated, the 4th August, 2023
1. The Principal Secretaries/Secretaries, Department of Transport for all States/UTs
2. The Transport Commissioners of all the States/Union Territories
Sub: Levy of fee/passenger tax/border tax from tourist vehicles plying under All India Tourist Vehicles (Permit) Rules, 2023 — reg
Sir/Ma’am,
I am directed to say that it has come to notice ofthis Ministry 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.
2. 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 permit in respect of tourist vehicles valid for the whole India.
3. 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 following month as per the formula prescribed in sub-rule (2) of Rule 3 of All India Tourist Vehicles (Permit) Rules, 2023
4. In view of above facts, all States and UTs are advised not to levy any other kind of taxes/fees from the tourist vehicles plying under the strength of valid permit issued under All India Tourist Vehicles (Permit) Rules, 2023 across the country.
5. This issues with the approval of competent authority.
Yours faithfully,
(S.K. Geeva)
Under Secretary to the Gover’iiment of India
Tel:. 011-23739074
Email: geeva.sk@nic.in
