Centre against state border tax levies

livemint.com:

NEW DELHI : The ministry of road transport and highways has asked states and union territories to stop charging additional levies in the form of passenger tax, checkpost tax and border tax from tourist vehicles. In a letter to principal secretaries, transport secretaries and transport commissioners of states and UTs, the road ministry said vehicles with all India tourist permits have a mechanism where permit fees are shared with the states.

Any charge in addition to that is unjustified and restricts the free movement of tourist traffic, it added. Though transport services come under the purview of state governments that have powers to frame rules and regulations related to them, the Central government is empowered under the Motor Vehicles Act, 1988 to make rules for promoting tourism, including granting permits to tourist vehicles valid for the whole of lndia.

Most tourist vehicles on interstate routes operate on the basis of all India permits. “The All-lndia Tourist Vehicles (Permit) Rules, 2023 were made with the objective of seamless and hassle-free movement of tourist vehicles across the country on the strength of permit issued after making the payment of fee prescribed...lt is pertinent to mention here that the permit fee collected under Rule 3 is disbursed among the States and UTs in the following month," the letter from MoRTH said.

MoRTH notified the All-India Tourist Vehicles (Permit) Rules, 2023 in April 18 and made its provisions applicable from May. However, in the absence in proper information about rules changes, a few state governments have been charging additional permit fee .