Car dealers monopoly in Himachal Pradesh

himachal carsDecision of Himachal Pradesh Government to impose 5% entry tax on vehicles purchased from outside the state is pinching the pockets hard. This decision has resulted in dealers getting a complete monopoly and buyers are now left completely at the mercy of the dealers.

Earlier there was an option to buy cars from Chandigarh, Punjab or Haryana as the dealers there used to offer handsome discount and freebies when buying a car. This used to pressure the dealers in Himachal also to offer schemes. Once the said decision was implemented, the dealers in Himachal have got a virtual monopoly and have stopped all schemes, discounts etc and are minting money at the cost of the buyer.

The government was not loosing any money as all central taxes like VAT etc. were already being charged by the dealers outside the state. As these vehicles used to get registered in Himachal and govt was getting it’s due in form of road tax etc.

This move has been done clearly to benefit the car dealers in the state. These dealers now give two hoots to the customer service. Goyal Motors customer service in Shimla is legendary. I underwent worst experience of my life when I went to buy an Alto car for my father. I vowed then and there never ever to enter this show room again in my life. Though I have been a fan of Maruti cars, my family later bought Toyota and TATA cars owing to third rate nightmarish experience with Goyal Motors, Shimla.

It is not that all other dealers provide great experience. They refuse to budge while negotiating for discounts. It is an open loot here in Himachal as the same car outside the state is available for a discount upto 20-30 thousand while we Himachalis are forced to shell out full amount for the same product.

This is a highly monopolist directive issued by the Himachal Government just to please it’s favorite dealer lobby. The state government is now doing business where as it should focus on it’s key area of governance. Even charges for choice numbers have been hiked beyond proportion. Earlier, a four digit choice number used to cost Rs. 2500/ which has been hiked to Rs. 20,000/

I fail to see the logic behind this hike. Buying a car is a life time decision and people used to associate any number associated with their lives with the car. What was the need for the government to nudge it’s finger in the matter and hike the rates?

I am sure that overall collections of the government has gone down once the new rates were announced. Why the bloody government has to intervene in each and everything when so many issues regarding governance are in a mess in the state.

Has anyone in the government seen the conditions of road in entire Himachal Pradesh?

Another intersting phenomenon I have noticed that Himachal Government has brought Luxury cars from Karantaka and Gujarat for it’s ministers and bada babus. These cars are running with Karnataka and Gujarat numbers within the government.

As such Himachal Government is itself evading the entry tax because once these cars are registered in Himachal, they will have to pay the entry tax.

Imagine the absurdness where a state government is itself involved in evasion of tax imposed by itself!!

It is high time that the chief minister Mr. Dhumal sheds the Musharraf style mindset of  ‘My way or the highway’  and brings some sort of rationale to his decisions.

If any lawyers happen to read this article, I would like to hear point of view from consumer side. Can government create such monopolist policies?

Let’s discuss this in the comments below.


28 thoughts on “Car dealers monopoly in Himachal Pradesh

  1. For example there is no dealership of Nexa in HP nd i wann go for a vehicle that is only available at Nexa. Due to this tax i have to kill my dream if my pocket is not allowing me for that extra 5%.

  2. After the implementation of gst does the entry tax still prevails or the same has been washed out since there is no vat component alive now.

  3. I buy a vehicle from punjab due to some reasons and i want to register that one from my native state state is there any registration tax i have to pay besides the normal process with gst billing

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