20/05/2023
OWNING VINTAGE CARS IN INDIA
I am posting this based on my experience. In India, a small collector of vintage cars, be it only one car, or a few cars, is the most affected person.
I have my own reasons for this which i have itemized below.
1. REGULATIONS
I was personally associated with submitting a memorandum to the Ministry of Road Transport,Delhi. A few others were also with me in this effort. We had several meetings with the ministry. Accordingly, draft regulations were issued by the ministry in December 2019, inviting comments from the public. These draft regulations were almost on the same lines as our memorandum. The ministry announced the final regulations much later, which was a watered down one. This did not help much at all. Moreover, many states have not bothered to follow this regulation. Thus we are back to square one, in the absence of any beneficial provision for vintage cars in India.
As a result we in tamilnadu pay annual taxes, not life tax. We are subjected to emission and fitness tests. These test formats are meant for newer cars and hence old cars fitted with carburettors and drum brakes have a problem meeting these tests.
2. FUEL.
Major problem is the availability of only ethanol blended fuel. In some countries ethanol free petrol is also available. But that's too much to expect from government owned fuel companies.
Ethanol is hygroscopic and forms compounds that deteriorate rubber, plastic etc. The water content in ethanol also rusts the tank.
We have no choice, but to endure.
In Chennai we face one more problem. Petrol will not be sold if we take petrol Jerry can. That's the rule here.
3. SOFTWARE
Neither the software in RTO, nor insurance companies have a provision to enter the manufacturer name. As a result the concerned person enters whatever name he likes.
4. IMPORT OF PARTS
Importing spare parts has become cumbersome. Import export code has been made compulsory. There is an exemption to have this code if the import is for personal use. But in this case, personal use doesn't apply for spare parts imported for one's own own cars. This code which was for a lifetime earlier, has to be renewed every year. For a small collector this is not easy.
The rupee has weakened against foreign currency. Added to this, the duty rates are now 50-60%. Hence is a double whammy . Import of tyres has its own uncertainties.
NO FEDERATION
There isn't any federation in India worth its name for vintage cars. The city centric vintage car clubs are managed by large collectors. The small collector is thus left in the lurch.
I was a member of the international federation; FIVA. I was also an advisor legislation of FIVA. My purpose was to seek their help in getting the regulations through in India. Sadly, that didn't work. Their understanding of the indian scenario is not good. FIVA was more interested in approving a federation for India.
CAPITAL GAINS TAX
The sale of vintage cars is viewed in the same manner as the sale of antiques. There's a high court judgement saying that if it can be proved that the car was used for personal use, then there's a possibility of capital gains tax waiver. But for this, we need to substantiate with maintenance and fuel bills of the car. For an individual to maintain perfect accounts is not easy. Instead a flat 5% capital gains tax will be a good idea.
Last of course is the horrendous traffic, which makes driving these cars much less enjoyable. I personally feel that in the long term, museums will be the way to go.
