With Octroi gone, Mumbai sees 105% spike in two-wheeler registration
What's the story
More than 105% two-wheelers and 42% cars and SUVS have been registered in a year in Mumbai, thanks to the removal of a key BMC tax. Octroi was removed from Mumbai after GST was introduced in July'17. This means buyers don't have to pay the additional 4.5% tax anymore. This has made a significant difference especially to the registration of mini-buses and delivery vans.
To avoid octroi
Earlier vehicle registration would be done in other MMR areas
The rise in vehicle registration is more in island city (Isle of Bombay, Parel, Mazagaon, Mahim, Colaba, Worli, Little Colaba) than the suburbs. The octroi that vehicle buyers had to pay to the RTOs was Rs. 3,000-5,000 (two-wheelers), Rs. 18,000 (hatchback) and Rs. 60,000 (SUV). Hence, many preferred to get their vehicle registration done elsewhere in the Mumbai Metropolitan Region, like Pen or Panvel.
Data
Stunning: 660% rise in minibus registration in Mumbai
The number of two-wheelers registered in 2017-18 was 24,000 more than the last year's figures. Similarly, car registration saw a rise of 5,000, in the last one year. The maximum increase has been in minibuses and delivery vans, 660% and 175%, respectively.
No more wait
Online system helping in growth of vehicle registration too
Since now buyers have to pay the same road tax and insurance across MMR, they want to register their cars in Mumbai and have MH-03 number-plates (depicting eastern suburbs). Moreover, the online system has made the registration process real smooth. "Instead of waiting endlessly for a number-plate, you can get it within 48 hours of the file reaching RTO," said a transport department official.
Information
Death of a legacy: When Octroi was abolished after 52-years!
Octroi was implemented from April 1, 1965, till June 30, 2017, lasting a whopping 52 years. The BMC-levied tax was collected from five check-points: Vashi, Dahisar, Mulund, Thane and Airoli. Till March 2017, the yearly income through octroi was Rs. 7,600 crore.