Life tax on vehicles enhanced

Hyderabad, May 10: Telangana State transport department has increased life tax on different types of vehicles.
 
The department has increased the two-slab system to four-slabs. Earlier, the tax was different for vehicles costing less than Rs 10 lakh and more than Rs 10 lakh. Now the department has increased the tax from one to 6 per cent. It was decided to divide the cost of vehicles into four categories and to levy tax accordingly.
 
As per the new system, a life tax of 9% will be levied on vehicles, whose cost is less than Rs 50,000 and it will be 12% if the cost is more than Rs 50,000. Like earlier, if a person has to pay 2% additionally if he wants to register second vehicle.
 
With this new life tax system, the government is expecting to get more than Rs 1,000 crore additional income.
 
Life tax for three and four wheeler vehicles, motor cabs, cars, jeeps and other non-transport vehicles will be 13% with cost less than Rs 5 lakh. It will be 14% if the cost is less than Rs 10 lakh; 17% for vehicles costing less than Rs 20 lakh, and 18% for vehicles costing more than Rs 20 lakh.
 
For transport vehicles, life tax will be 15% for vehicles costing less than Rs 5 lakh; 16% for vehicles whose cost is less than Rs 10 lakh; it will be 19% for vehicles costing Rs 20 lakh and 20% for vehicles whose cost is more than Rs 20 lakh.