Transport dept. enhances life tax on different categories of vehicles

From Monday new taxes in effect; range from 9% to 20% on different categories

Telangana State Transport Department office. File | Photo Credit: K.V.S. Giri

As expected the Transport department has increased life tax on different categories of vehicles.

The department has announced enhancement of life tax on motor vehicles in the third, sixth and seventh schedules of the Telangana Motor Vehicle Taxation Act, 1963 with effect from Monday. Accordingly, life tax of nine % of the cost of the motor cycles, including tricycles and motor scooters, will forthwith be levied on vehicles whose cost does not exceed ₹50,000 at the time of registration and it would be 12 % in case of vehicles costing more than ₹50,000.

Three and four wheeler motor vehicles have been divided into four categories and tax slabs have been fixed based on their cost. Life tax on three or four wheelers, including cars, jeeps under non-transport category, omnibuses up to seating capacity of 10 persons, would be 13 % for vehicles costing less than ₹5 lakh, 14 % for those costing between ₹5 and ₹10 lakh, 17 % for vehicles costing ₹10 lakh to ₹20 lakh and 18 % for those costing above ₹20 lakh at the time of registration.

In addition to cars and jeeps coming under non-transport category, new life tax would be applicable to motor cabs and motor cabs of other States that are entering into the rolls of the State by way of change of address or transfer of ownership. The seventh schedule of the Act has been amended to pave the way for enhancing life tax on non-transport vehicles meant for carrying persons, owned by companies/ institution/ societies/ organisations up to a seating capacity of 10 in all and second or more personalized vehicles up to a seating capacity of 10 in all owned by an individual.

Accordingly, life tax of 15 % will be levied on vehicles costing less than ₹5 lakh, 16 % for vehicles costing between ₹5 lakh and ₹10 lakh, 19 % for vehicles costing ₹10 lakh to ₹20 lakh and 20 % for vehicles costing above ₹20 lakh.

Tax has also been increased for second or more personalised vehicles up to a seating capacity of 10 in all owned by an individual. An additional 2 % tax on the rates prescribed in the third and sixth schedules would be levied but at the time of registration of new vehicles only. The department, in the orders issued on Monday, also divided already registered vehicles into different categories and announced revised rates of life tax at the time of their registration.

The department is anticipating additional revenue on account of the amendments proposed to the Act to be around ₹1,400 crore.