Get ready to pay more life tax for your new Car

HYDERABAD: People planning to buy a car or motorcycle may have to fork out more soon with the state government planning to hike the life tax for new vehicles. According to Road Transport Autho

Published: 13th February 2012 07:37 AM  |   Last Updated: 16th May 2012 05:55 PM   |  A+A-

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HYDERABAD: People planning to buy a car or motorcycle may have to fork out more soon with the state government planning to hike the life tax for new vehicles. According to Road Transport Authority officials, there will be no increase in the 9 percent life tax for motorcycles costing less than Rs1 lakh but for bikes above Rs 1 lakh, the life tax will be 16 percent.

For four-wheelers costing less than Rs10 lakh, the tax rate will remain at 12 percent, while it will be 14 percent for vehicles costing upto Rs 20 lakh.

The proposed tax for vehicles above Rs 20 lakh is 18 percent.

Similarly, the existing 14 percent life tax for non-transport vehicles used in companies and Industries will be increased to 18 percent.

RTA officials have also proposed for a three percent life tax for autorickshaws, tractors and trailers, for which the transport authority were till now collecting only a quarterly tax.

“Most of the auto and tractor owners are not paying quarterly tax and collecting from them has became a headache. So we are planning to impose a life tax on the vehicles,” an RTA official said. According to information, the transport authority had proposed a higher percentage of life tax but Transport minister Botcha Satyanarayana refused to levy more tax on auto and tractor owners.

It must be noted that the RTA had recently sent a proposal to increase green tax for wornout vehicles as well

proposed rates * For bikes above Rs1 lakh - 16 pc * For cars upto Rs 20 lakh - 14 pc Rs For cars above Rs 20 lakh - 18 pc * For company vehicles - 18 pc * For autos, tractors, trailers - 3 pc

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