Levy of Fee from Tourist Vehicles Plying Under All India Tourist Permit

MVL Section, Ministry of Road Transport and Highways, Government of India has issued a circular bearing reference number rt-1 1 036/69/2023-MVL dated August 4, 2023, regarding the collection of fee, passenger tax, or border tax from tourist vehicles plying under the All-India Tourist Permit.

According to Section 88(9) and (14) of the Motor Vehicles Act, 1988, the Central Government has the authority to enact rules and regulations that aim to encourage tourism and issue permits for tourist vehicles that are valid throughout India. Therefore, the All-India Tourist Vehicles (Permit) Rules, 2023 were issued to enable the transportation of tourist vehicles throughout the country by obtaining permits upon payment of the required fee.

Under Rule 3 of the 2023 rules, individuals must apply to the Transport Authority for the issuance or renewal of the All India Tourist Permit for tourist vehicles. The application should be accompanied by the specified fee mentioned in the table under sub-section (3) of Rule 3. No additional taxes or fees shall be imposed. The issuance of the All India Tourist Permit for battery-operated tourist vehicles and tourist vehicles fueled by methanol or ethanol will be exempt from any permit charge.

Upon receiving an application in accordance with Rule 3, the Transport Authority is authorized to electronically examine the documents to verify that the vehicle possesses the required valid documents, including a certificate of insurance, certificate of fitness, Pollution Under Control Certificate, and proof of payment of the applicable tax as mandated by the State or Union territory in which the vehicle is registered.

The permit fee so collected is distributed among the States and Union territories as per the formula prescribed under Rule 5.

Despite this, it was observed that certain States and Union Territories are imposing taxes on tourist vehicles operating with a valid permit under the 2023 rules, in the form of passenger tax, border tax, check post tax and similar charges.

In consideration of the aforementioned, the Ministry of Road Transport and Highways has requested all the States and Union Territories, vide the circular, to refrain from imposing any additional taxes or fees on tourist cars operating nationwide, as long as they possess a valid permit issued under the All-India Tourist Cars (Permit) Rules, 2023.