Telangana Announces New Road Safety Cess for Vehicle Buyers
In a significant move to bolster road safety, the Telangana government has introduced a one-time road safety cess for buyers of non-transport vehicles. This levy, which will be enforced from March 1, applies to a range of vehicles including two-wheelers, cars, other private vehicles, and passenger autorickshaws. The cess amounts vary from 2,000 to 10,000, depending on the vehicle type, and must be paid during the registration process.
Cess Structure Based on Vehicle Categories
According to the official notification released by the transport department, the cess has been categorized to ensure fairness across different vehicle types. Two-wheelers will incur a charge of 2,000, while light motor vehicles, such as cars, will be subject to a 5,000 fee. For other vehicles, including passenger autorickshaws with seating capacities of four to seven persons, the cess is set at 10,000. This structured approach aims to align the levy with vehicle usage and potential road safety impacts.
Legal Basis and Objectives of the Levy
The transport department issued orders on Wednesday night, invoking the state's powers under the Motor Vehicles Act to impose this tax. Officials have clarified that the primary goal of this initiative is to establish a dedicated funding stream for road safety measures. The funds generated will be utilized for infrastructure improvements, enhanced enforcement mechanisms, and accident-prevention programs. This move is expected to facilitate targeted interventions in accident-prone areas and improve overall road safety management across the state.
Related Tax Reforms and Exemptions
In addition to the road safety cess, the government has implemented several related tax changes. Three-wheeled goods vehicles have now been brought under the life-tax category, replacing the previous quarterly tax system. This restructuring is anticipated to simplify compliance for vehicle owners and streamline tax collection processes. Furthermore, the tax structure for four-wheeled light goods vehicles has been revised. New vehicles registered in Telangana will attract a life tax of 7.5% of the vehicle cost. For vehicles brought from other states, the tax rates vary based on age: 6.5% for those under three years old, 5% for those between three and six years, and 4% for vehicles older than six years.
Financial Impact and Exemptions
The government estimates that the road safety cess will generate approximately 270 crore annually, providing a substantial boost to road safety initiatives. However, certain vehicles have been exempted from this levy. Tractors and trailers used exclusively for agricultural purposes will not be subject to the cess, ensuring that the agricultural sector remains unaffected by this new policy.
This comprehensive approach by the Telangana government reflects a commitment to enhancing road safety through dedicated funding and streamlined tax systems, aiming to reduce accidents and improve transportation infrastructure statewide.
