HYDERABAD: The state government on Wednesday issued a GO raising life tax rates on all types of vehicles (transport and non-transport).
From August 14 onward, the new rates at the time of registration range from 9% for two-wheelers costing below Rs 50,000 to 18% for those above Rs 2 lakh. Tax rates on older two-wheelers will reduce progressively with age, starting from 8% for those less than two years old to 1% for vehicles more than 11 years old in the lowest cost bracket.
For non-transport cars, jeeps, omnibuses with up to 10 seats, and certain motor cabs, the tax at the time of registration will be 13% for vehicles costing below Rs 5 lakh and 21% for those above Rs 50 lakh. Rates for already registered vehicles decline with age but remain higher for more expensive vehicles.
A separate slab has been introduced for non-transport vehicles owned by companies, institutions, and societies, as well as for second or subsequent personal vehicles. Here, registration-time taxes start at 15% for vehicles below Rs 5 lakh and go up to 25% for those above Rs 50 lakh, with an additional 2% applied to rates in the Third and Sixth Schedules.
The GO claims that this was being done under the Telangana Motor Vehicles Taxation Act, 1963, with the aim of improving road infrastructure, enhance road safety and strengthen enforcement.
“The amendment replaces the existing Third, Sixth and Seventh Schedules of the Act, increasing tax rates for various categories based on the cost and age of the vehicle,” the GO says.