In A city that has the second highest vehicle density in the country, it is the sale of automobiles that tops the list when it comes to contributing to collection of Value Added Tax (VAT). During the financial year 2012-13, VAT collection from automobiles was more than Rs 329 crore. From April to October this year, the VAT collection has touched Rs 149 crore.

The total VAT collection for 2012-13 was Rs 1,285 crore while the collection till October 31 this year is Rs 789.87 crore. The VAT on automobiles sold in Chandigarh is charged at a rate of 12.5 per cent.

Between 200 and 250 vehicles are registered every day at the Registering and Licensing Authority. In fact, the rising vehicle density is one of the areas of concern for the urban planners as the parking spaces are shrinking. Apart from that, the traffic chaos on the roads is increasing, necessitating the need for widening of roads or planning alternative routes.

For a city of 10.55 lakh population, there are close to 9 lakh vehicles registered and the number is increasing by the day. As per Census data, vehicle density in the city is the second highest in the country. Adding to it is the floating population of another one lakh vehicles in a city that is short of vacant spaces. Several multilevel parking lots have been proposed to tackle the rush in the commercial areas. Even in the residential areas, proposals for multilevel parking lots have been floated, though these are yet to materialise.

Among the other sources from which VAT in the city is high are petroleum products and lubricants. An amount of more than Rs 206 crore was garnered from VAT collections on these products. For the current financial year, the figures till October are Rs 127 crore.