Insertion of the new sections 6A, 6B, 6C and 6D in Bihar Act 8, 1994

After section-6 of Bihar Act 8,1994, the following new sections shall be added,:— "6A. Levy and collection of road safety cess— (1) There shall be levied and collected a road safety cess at the following rates:- (a) every licensee at the rates specified in Schedule IV of this Act; (b) every vehicle liable to pay one time tax in accordance with the provisions of sub-section (1) of section-7, at the rate of one percent of the value of such vehicle; and (c) every vehicle liable to pay tax under this Act, other than a vehicle liable to one time tax in accordance with the provisions of sub-section (1) of section-7, at the rate of one percent of the annual tax payable under this Act on such vehicle: Provided that the said cess shall not be levied more than once during the validity of a license. Explanation—For the purposes of this sub-section— (i) the expression "licensee" means a person to whom a driving license has been issued by the competent authority under Chapter II of the Motor Vehicles Act, 1988 (Act 59 of 1988). (ii) the expression "value of such vehicle" means value of the vehicle without the amount of tax levied on such vehicle under the Bihar Value Added Tax Act, 2005 (Act 27 of 2005). (2) Every cess leviable under sub-section (1) shall be payable by the registered owner or any person having possession or control of the motor vehicle, as the case may be. (3) The cess levied under sub-section (1) shall be collected by the Tax Assessing Officer appointed under section-3 in such manner and at such time as may be prescribed. (4) Where any person liable to pay the cess levied under sub-section (1) fails to pay such cess within the time prescribed under sub-section (3), such person shall, in addition to the cess, pay a sum equal to 2.5% of the cess payable for every month or part thereof for the default. (5) Out of the proceeds of the cess levied and collected under this Act by the State Government, the expenses of collection and recovery shall be deducted in the manner as may be decided by the Government and thereafter it shall be utilized into the fund established under section 6B. 6B. Establishment and use of fund—(1) The State Government may, by notification in the Official Gazette, establish a fund which shall be called the "Bihar Road Safety Fund". (2) The fund shall be credited with the following:— (a) the amount utilized under sub-section (5) of section 6A; (b) grants, loans or advances given by the State Government; (c) grants, loans or advances given by the Government of India; (d) contribution received from private or public institutions or organizations. (3) The State Government shall contribute to the fund every year an amount equal to ten percent of the compounding fee collected under section 200 of the Motor Vehicles Act, 1988 (Central Act 59, 1988) in the preceding year. (4) The fund shall be used for all or any of the following purposes:— (a) road safety programmes; (b) awareness programmes in relation to road safety; (c) purchase of equipment related to road safety; (d) funding of approved studies and research on projects related to road safety; (e) funding of training programmes related to road safety; (f) accident care programmes and related activities; (g) such other expenses on issues related to road safety as the State Government may deem fit; (h) any other purpose as may be prescribed. 6C. Vesting and administration of the fund—(1) The fund shall vest in the State Council and shall be operated by the State Council. (2) The State Council shall operate the fund vested in it in such manner as may be prescribed. (3) All amounts which are part of the fund shall be deposited in the bank where receipts of other taxes levied under this Act are deposited or shall be deposited in such other bank as the State Government may notify in the Official Gazette and the account shall be operated in such manner as the State Council may decide. 6D. Power to amend the Schedule—The State Government, by notification in the Official Gazette, may make addition, amendment, alteration or modification in any Schedule of this Act."