Cars will become expensive by more than Rs 30 thousand in this state, price of bikes may increase by Rs 5000

Prices of two-wheelers, cars and tourist cabs in Tamil Nadu may rise by up to 5% as the Assembly on Wednesday passed a bill to increase road tax on motor vehicles. Transport Minister SS Shivshankar to increase lifetime road tax for new vehicles and annual and quarterly tax for existing vehicles Tamil Nadu Motor Vehicle Taxation ActA bill to amend the Bill was introduced in 1974. The bill also proposes an increase in green tax and road safety tax for all vehicles.

Road tax was last increased in 2012

Road tax rates for motorcycles were last revised in June 2008 and for cars in June 2010. For tourist cabs and maxi cabs, the road tax was last increased in 2012. The new rates will come into effect after the Governor gives his assent to the bill and a notification has been issued by the state, sources said. Road tax on two-wheelers with engine capacity of 150 cc and above, which usually cost around Rs 1 lakh, will increase to 14% from the existing 8%, increasing the price per vehicle by Rs 5,000 to Rs 6,000.

Car prices will increase by Rs 25,000 to Rs 30,000

For cars priced between Rs 20 lakh and Rs 40 lakh, there will be an additional 5% road tax over the existing rate of 15%. Due to this their prices will increase by Rs 1.2 to 2.4 lakh. There will be an increase of 3% road tax on cars priced below Rs 10 lakh from the existing 10%, resulting in a price increase of Rs 25,000 to Rs 30,000 including GST.

Motorcycles will be taxed at 10 to 12%

Currently, two-wheelers are charged a flat road tax of 8% for a period of 15 years. But according to the new bill, 10% road tax will be imposed on motorcycles priced up to Rs 1 lakh and 12% tax on motorcycles priced above Rs 1 lakh.

Road tax for old bikes and cars has also been revised according to their age and value

Similarly, under the current system, 10% road tax is levied on cars priced up to Rs 10 lakh, tourist motor cabs (6 seats + driver) and tourist maxi cabs (12 seats + driver). 15 percent tax is levied on cars worth more than Rs 10 lakh. Under the proposed bill, cars, tourist motor cabs and tourist maxi cabs priced at Rs 5 lakh will be taxed at 12%, vehicles priced between Rs 5 lakh to Rs 10 lakh will be taxed at 13%, and vehicles priced at Rs 10 lakh and above But 13% tax will be imposed. And Rs 20 lakh will be taxed at 18%. Cars worth more than Rs 20 lakh will be taxed at 20%. Road tax for old bikes and cars has also been revised according to their age and value.

Decision taken to increase revenue

Minister Shivshankar said, “In order to increase the revenue of the state, the government has decided to amend the TNMVTAC 1974.” The revenue through vehicle registration and road tax for 2022-23 was Rs 6,674.29 crore. Green tax for two-wheelers has been increased from Rs 500 to Rs 750 and for non-transport vehicles older than 15 years, green tax has been increased from Rs 1,000 to Rs 1,500. The minister said an annual green tax of Rs 250 will be imposed on autorickshaws older than seven years.

Amendment made after 10 years

Road safety tax for motorcycles, cars and other vehicles has also been increased to Rs 375, Rs 2,250 and Rs 3,000 respectively. The old rate was Rs 250 for bikes and Rs 1500 for other vehicles. An official said the move is inevitable as the rates have not been revised for more than 10 years.