The Life Time Road Tax is a bad idea for a lot of reasons:
1. Government collects and spends taxes in year1 whereas the car will be on the road for at least 10 years. Which means as time goes by, the government will lack the funds to provide the services associated with vehicles. This front ending of income with expenses spread over a number of years is a very very bad idea.
2. It creates complications for transfers - in effect by levying the lifetime tax again if you transfer to another state, we are discouraging free movement within the country. Are we one country, or are we doing a reverse Europe?
3.In cases of transfer there is no refund although this not the official policy. As such this gives scope for fraudulent refunds - or if you prefer simple theft of your money.
I wonder who came up with this brilliant idea and why.
Since it does not make any sense from any logical viewpoint I can only conclude that this whole rule was devised with an eye on maiing money by making all our lives difficult. So much for Indian governance......
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