Noida Cab Operators Demand Relief from New Lump-Sum Road Tax Policy
In Noida, a coalition of cab operators has formally requested the relaxation of a recently implemented one-time road tax payment system, asserting that it imposes significant financial hardship on their businesses. The revised regulations, enacted by the state government in February, mandate that owners of commercial vehicles—including cabs, taxis, trucks, and buses—pay approximately 10% of their vehicle's value in a single lump sum, replacing the previous quarterly, biannual, or annual payment schedules.
Financial Strain on Operators
Numerous vehicle owners have voiced concerns over the difficulty of arranging such substantial amounts upfront. A delegation of cab operators met with officials on Sunday to express their grievances. Pradeep Kumar, proprietor of Pradeep Tour & Travels, who manages a fleet of nearly 40 cabs, highlighted the stark contrast in payments. "Previously, we paid road tax ranging from Rs 6,000 to Rs 10,000 per car on a quarterly basis. Now, the government demands Rs 1 lakh or more per vehicle as a one-time payment, depending on the vehicle's model and age," he explained.
Kumar emphasized that securing such large sums is particularly challenging for operators with multiple vehicles, compounded by the competitive market dynamics. "The cab industry is highly competitive, with several aggregators offering low fares that erode our revenue margins," he added, underscoring the financial pressure.
Specific Cases and Broader Impact
Another cab owner, who requested anonymity, shared his experience with five cabs. "Last year, I purchased a Toyota Innova for Rs 24 lakh, with a quarterly tax of around Rs 12,000. Under the new system, the one-time tax demand is nearly Rs 3 lakh," he stated, noting that many operators lack the liquidity for such lump-sum payments.
According to official data, Noida has approximately 12 lakh registered vehicles, including:
- 19,800 taxis
- 3,156 bike taxis
- 29,852 goods carriers
- 17,892 autos
- 4,548 buses
- 7,10,234 motorcycles
- 3,73,695 private cars
Detailed Tax Structure
The new tax framework stipulates that commercial vehicles with an unladen weight of up to 7,500 kg must pay tax only once. The rates vary based on vehicle type:
- Two-wheelers used as bike taxis are taxed at 12.5% of the vehicle's cost.
- Three-wheelers attract a 7% one-time tax.
- Four-wheeler commercial vehicles costing up to Rs 10 lakh are taxed at 10.5%, while those priced above Rs 10 lakh face a 12.5% tax.
- Goods vehicles with a gross vehicle weight (GVW) of up to 3,000 kg pay 3% of the vehicle cost, and those with a GVW between 3,000 kg and 7,500 kg are taxed at 6%.
Official Response and Future Steps
ARTO (Administration) Nand Kumar addressed the issue, stating, "There is no provision to collect tax quarterly or annually under the current system. Commercial vehicle operators must comply with the one-time payment requirement. We have received the representation from cab operators and forwarded it to the headquarters for further consideration."
The operators' plea highlights the broader economic challenges faced by small and medium-sized businesses in adapting to sudden policy shifts, with potential implications for the local transportation sector and consumer services.
