Thaindian News

New Delhi, Feb 13 (IANS) To cut transaction costs in the transportation sector, Road Transport and Highways Minister C.P. Joshi Monday urged state governments to rationalise motor vehicle tax to facilitate easy movement of vehicles across the country.

“There is an urgent need to rationalise motor vehicle taxes in order to make the road transport system in the country hassle free and for seamless movement of goods and tourist vehicles,” Joshi said at the 34th meeting of the transport development council here.

The development assumes significance as there is a large variation in motor vehicle taxes, base and methodology of collection.

According to Joshi, the sector has to adopt IT solutions for providing seamless movement of vehicles across states. This will reduce transaction costs involved in the movement of goods.

“With this objective in mind, there is a need to rationalise the existing motor vehicle taxation system in order to reap benefits of technology,” Joshi said.

The ministry has achieved the task of connecting and computerisation of data base of all RTOs (regional transport office) in every state and union territory. The ministry also launched the national register and national transport portal launched in July 2011.

Joshi said the government’s decision to introduce new national permit scheme was running efficiently with the help of NIC (National Informatics Centre), State Bank of India and the ministry.

He emphasised on the need for greater attention on road safety.

He said a meeting of the national road safety council will be convened and that states must come up with concrete action plans to cut road accidents.

“Taking into consideration that India has one of the highest road accidents in the world, it is high time that road safety measures get due priority by state governments in their future plans.”