Telangana to Introduce One-Time Road Safety Cess on Vehicles from March 1

Hyderabad: The Telangana Transport Department will impose a one-time road safety cut on registration of vehicles in the state from March 1.

A total road safety tax of Rs 10,000 will be collected on all non-transport vehicles and transport vehicles, except motorcycles and light motor vehicles, with the exception of three-wheeler contract cars such as passenger autorickshaws with a total seating capacity of four, five, six and seven people.

The exemption for non-transport vehicles such as motorcycles is Rs.2000; and this shall be Rs 5,000 for light motor vehicles, excluding tractors and tractor trailers used for agricultural purposes.

A newspaper notification published in Telangana states that the road safety cut is aimed at releasing additional funds for road safety. “This will apply to vehicle categories and rates specified in the 9th Schedule.” It was stated that the amount collected in this way will be deposited into a special, timeless bank account.

The state assembly passed the bill to this effect, introduced by transport minister Ponnam Prabhakar, on January 2.

However, new four-wheeler light duty vehicles registered in the state will also attract lifetime tax (about 7.5 percent of the entire cost of the vehicle). This replaces the old three-month bracket.

According to the new law, vehicles “more than three years old but less than six years old” will be taxed at a rate of 5 percent of the total price of the vehicle. For vehicles over six years old, the tax will be 4 percent.