CHENNAI: The increased road tax rates for motor vehicles in the state came into effect from Thursday.
As a result, those purchasing new and used two-wheelers and four-wheelers will have to pay an additional amount ranging from Rs 5,000 to Rs 15,000.
Following Governor RN Ravi’s recent approval of the bill, which had been passed by the Assembly on October 11 to raise road taxes, the Tamil Nadu Motor Vehicles Taxation (Amendment) Act, 2023 comes into force, said a gazette notification released by the law department.
The previous road tax rates for two-wheelers had remained unchanged since June 2008 and for cars since June 2010. Tourist cabs and maxi cabs rates were revised in 2012. Under the revised structure, motorcycles with a value of Rs 1 lakh and above will now incur a road tax of 12%, as opposed to the existing 8%. Motorcycles priced below Rs 1 lakh will be taxed at a rate of 10%.
Similarly, for cars falling within the price range of Rs 20 lakh to Rs 40 lakh, the road tax is set at 20%. This is expected to result in an increase of Rs 1.2 lakh to Rs 2.4 lakh. Cars priced below Rs 10 lakhs will have a 3% increase in road tax from the current 10% rate.