Calculating token tax on vehicles

There emerge routinely lot of intricate problems in day to day activities almost everywhere but they are generally, in ordinary course,suitably resolved and without loss of much time, otherwise things would come to a grinding halt. Unfortunately, it took Finance Department more than two months in deciding as to how token tax was to be calculated in respect of registration of old vehicles in the UT of Jammu and Kashmir. It may be recalled that ‘Excelsior’ through these very columns, had twice dwelt on the issue of charging of token tax and the confusion over it especially over those vehicles which had run their life of and over 15 years besides voicing concern over spike in the onetime token tax payable on vehicles. Though by now, it was expected that Finance Department , after having “exerted a lot” must have found the “solution” to the problem has,in fact belied the expectations of the people by further confusing the matter. The axiom of simple solutions to simple matters should have been given practical shape by the said department in the instant case but matters stand muddled and intricately folded. In other words, renewal of the registration of old vehicles continues to remain on hold.
Whatever the clarification or guidance given by the Finance Department (FD) to Regional Transport Authorities, the same has been found ‘intricately classified’ in respect of registration of old vehicles . If reports are correct , neither do they appear to have deciphered the calculation method nor its technical language . While efforts are gaining momentum to simplify and streamline the procedures in offices , courts , revenue institutions etc with special emphasis on making the language of contents understandable, it is beyond comprehension as to why the clarification has been issued to open many Pandora’s boxes for seeking more and yet more of clarifications. The simple way out would have been to conduct a day’s workshop for the personnel of the R.T.Os’ offices and guide them practically so that they could understand what the FD wanted them to know and practically do.
If the clarification issued on February 12 in respect of registration of old vehicles is concerned, it says that written down value method (as applied in calculating depreciation of assets in accounting standards) shall be adopted to work out the residual value of the vehicles at the end of their registration period as prescribed in the relevant Act for ascertaining the token tax payable at the registration of the old vehicle. Consumer Price Index as the discounting factor coupled with directions of National Green Tribunal , Central Pollution Control Board and the like before authorising registration of old vehicles shall be taken into account. This even may be understandable by many but definitely other associated factors can be understood by very few unless in the clarifications , examples and instances on hypothetical basis are worked out and the tax payable shown how to be calculated.
In the absence of neither of the facilitating factors and smoothening the reckoning of tax with examples and ‘problems’ solved, how could the clarifications be not found fault with, is the moot question. Jammu and Kashmir continues to lag behind in matters of introducing workable propositions, inter mobility of the departments with intent to resolve issues on the spot and the most important requirement of conducting workshops and trainings in order to update the working knowledge and procedures. In fact, there are practically no investments and spending in areas of trainings and conducting of workshops in Jammu and Kashmir for various categories of employees. We urge the authorities concerned that they should go in for crash resolving methodology in respect of the matter as thousands of people continue to suffer for no fault of theirs. They have money in their pockets which they want to pay as tax , they visit the RTO offices , spend money and time for it all but there is no one to tell them how much they needed to pay . It is despicable and unwarranted.