CAG report: 535 vehicles plying without mandatory permit in Punjab

The Punjab Transport Department has failed to recover permit application fee, motor vehicle tax and social security surcharge for over 1,600 goods vehicles for the fiscal year 2020-21, resulting in a loss of over Rs 50 lakh to the state exchequer.

The Comptroller and Auditor General of India (CAG), in its report tabled on the concluding day of the three-day Vidhan Sabha session yesterday, noted that 11 Regional Transport Authorities (RTAs) recovered Rs 1.2 crore of the total Rs 1.57 crore in motor vehicle tax and social security surcharge for 1,076 goods vehicles. This led to a shortfall of Rs 37 lakh.

The Punjab Motor Vehicle Taxation Act mandates the imposition of taxes on every motor vehicle annually, allowing the state government to set the rates of motor vehicle tax on goods vehicles registered in the state. Additionally, a social security surcharge of 10% is levied on transportation vehicles.

The audit further highlighted that the 11 RTAs failed to recover the permit application fee and permit fee amounting to Rs 19 lakh for 535 transport vehicles in the fiscal year 2020-21. Of the 6,732 vehicles registered with the department, 6,139 were exempt from permit requirements, being e-rickshaws and goods carriers weighing less than 3,000 kg. The non-recovery of permit fee resulted in a loss of Rs 19 lakh, and 535 vehicles were found operating on roads without permit.

The audit report also found that the department failed to recover Rs 49 lakh from 432 maxi cabs and 12 tourist buses registered in the state. The tax for a tourist bus is Rs 7,000 per annum and for a maxi cab, it is Rs 750 per seat per annum. The department has failed to reply to the audit observations so far.