Monday, March 17, 2025

Hike in vehicle taxes

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The recent decision to hike the registration and other charges for newly acquired vehicles has raised a hornet’s nest. Some pressure groups have decided to take on the MUA Government on this issue by calling for a day’s office picketing as a token protest against the ‘unjustified’ hike. There are several arguments for and against the issue. Vehicle ownership cannot be linked to an individual’s wealth ranking. If the objective of the Government is to put a cap on vehicle ownership then hiking taxes on vehicle registration is a poor ploy. Most owners of private vehicles pay a one time charge for registration. This has been raised to three times the amount previously paid. Add to this the unreasonable levy for high security registration plates (HSRP) and the amount cuts a hole in the pockets of those who do not belong to the higher bracket of luxury car owners. Most people take loans to purchase a vehicle because it has become a necessity to get from one place to the other in the absence of a reliable public transport system.

Taxis are not the most convenient form of transportation. So much depends on the whim and fancies of the taxi driver. Passengers have no rights and no control over the routes taken by taxis. Taxis pick and chose only the most viable routes. Hence other forms of public transport are necessary. If successive governments had recognised this problem 20 years ago when city buses suddenly went off the road and taxis filled the void, there would not have been such a huge demand for vehicles. Even today, ordinary citizens would prefer to use the city bus to their places of work because spiralling fuel prices have made car ownership a heavy liability. Also the problem of parking and other concomitant risks add to the headache of self-driven vehicles.

For every issue there is also the flip side and the counterpoint. Many who do not own vehicles wonder why pressure groups are taking up an issue that is, on the face of it, an issue of the affluent who could well speak for themselves. They ask why the same pressure groups do not raise their voices against price rise of essential commodities. Food for thought this one!

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