Up to now, holders of a Trade Licence issued by any municipal or district council were eligible for a ?B Carriers Licence? at the National Transport Authority, which entitled them to a lower rate of Road Tax payable on their dual purpose vehicles with engine capacity exceeding 1600 cc, used in the course of their business activity. This measure was applicable to all eligible holders of Trade Licence, irrespective of the nature of business.

Recently, the NTA has decided that only certain categories of business owners will henceforth be eligible for the lower rate of Rs 3,000, while the rest, the majority, should pay? Rs 8,000. This is a flagrant rip-off and should be condemned. Even among the beneficiaries such as small planters, breeders and entrepreneurs, not all are eligible, as there are conditions to be satisfied, such as number of arpents of land or number of cattle heads owned. Entrepreneurs employing less than five persons are excluded. This means a large number of self employed entrepreneurs are penalized. Furthermore, proving one?s eligibility involves bureaucratic hurdles that contradict the spirit of general business facilitation.

No economic rationale

If the aim of the NTA is to raise revenue, then all owners of dual purpose vehicles should be made to pay the same rate. If the NTA wants to protect small businesses, then it should charge the same rate of Rs 3,000 from all small businesses, irrespective of the nature of activity. All businesses, whether they are in the agricultural, industrial or in the services sector, contribute equally to the economy. Either everyone pays Rs 3,000 or Rs 8,000.

If the NTA finds the rate of Rs 8,000 too excessive for some, then it could have introduced a more affordable rate of say, Rs 5,000, payable by all, and then recover the shortfall in revenue by increasing the rate on luxury vehicles, SUVs or Limos.

The role of the NTA is to collect road taxes from vehicle owners, and the rate should be calculated according to the type and engine capacity of the vehicle, and NOT according to the status of the vehicle owner!

For example, a particular model of dual purpose vehicle should have a single rate, irrespective of whether the owner is a small planter, a breeder, a fisherman, an entrepreneur, a trader, a hawker, a butcher or a ?menuisier?. There is no economic rationale for this new discriminatory measure as it favours some whilst penalizing others. Even the Hon Minister of Finance will agree that protecting one sector to the detriment of other sectors will only create imperfections and distort the market environment in a liberalized economy, and do more harm than good.

All sectors are equally productive and should be treated equally. Anything otherwise is outrageously against the principles of economic democratization, SME empowerment and equal opportunities, so much cherished by our Prime Minister, Hon Navin Ramgoolam and other members of the government.

The authorities should review this measure.

Mohammed HAMUTH