GANGTOK, 25 May: “A 100 percent increase in annual taxes for private vehicles is just too much. And then there is the high registration fees. This has prompted people here to buy & register their vehicles in neighbouring West Bengal instead because the costs work out substantially lower. I think the government should give this matter a big rethink since much of the State’s revenue is now being lost to vehicle dealers in Siliguri,” contended Ajeet Oberoi, the dealer for Yamaha motorcycles in Sikkim, who adds that ever since the notification announcing the new tax structure came into effect, he has lost 50 percent of his business.
The increased rate of vehicular taxes is proving a big “setback” for local entrepreneurs, dealers and buyers since many customers are now purchasing vehicles outside the state and using WB registration plates since the taxes in Sikkim are markedly higher.
According to official sources the new trend has also led to a fall in revenue for the state’s motor vehicle’s department as well.
Pramod Dalmiya, proprietor Sikkim Motors and the Hyundai dealer here, informs that a person purchasing a Rs.10 lakh luxury vehicle like a Scorpio or a Xylo, has to shell-out an extra 1 lakh in taxes.
“We have lost about 10 to 15 percent of our business in the past two months which is bad news for the State exchequer as well since even the 12 percent VAT which the state government was earning as revenue is now going to the WB kitty,” he tells NOW!



















