The Maharashtra government issued a government resolution (GR) on Tuesday granting 50 per cent waiver from vehicle tax for the financial year 2020-21.
However, an industry representative as well as an RTO officer said there was no clarity about how the waiver will apply.
The GR, which follows a cabinet decision last month, said the concession will benefit goods vehicles, tourist vehicles, private service vehicles, excavators, commercial camper vehicles and school buses/vehicles.
For availing of the benefit, the vehicle owner should have paid previous year's tax before March 31, 2020, and the waiver will be applicable for the period between April 1, 2020 and March 31, 2021, the GR said.
On August 26, the state cabinet had decided to waive 50 per cent tax on public transport and goods vehicles for giving relief to the transport sector which has been hit hard due to the coronavirus-induced lockdown.
It will cause a loss of Rs 700 crore to the state exchequer, the government had said.
Prasanna Patwardhan, president of the Bus and Car Operators Confederation of India, said a regular tax payer who has declared the vehicle as not being in use will get a full benefit of the scheme.
"Those who have not kept their vehicles under non-use will get benefit only till September-end. But let's see how RTO (Regional Transport Office) interprets it," he said.
A senior RTO official said on the condition of anonymity that the GR lacks clarity. The condition for tax exemption will lead to confusion, he said.
"What if the owner declares the vehicle as in non-use during this period," he said.
Malik Patel,leader of the Mumbai Bus Owners Association, said the government is expecting commercial vehicle operators to pay tax when there is almost no business.
"Banks have already started loan recovery and insurance companies are not ready to help," Patel said.