Car, bike prices to go up as TN govt hikes tax rates

Tamil Nadu government has announced a significant increase in tax rates for various types of vehicles, including cars and motorcycles. This decision, communicated through a Government Order (GO) following an ordinance passed in the Legislative Assembly, is set to have a substantial impact on the prices of new and old vehicles, creating waves in the automotive market.

Here are the key changes in the tax rates and their implications:

Passenger Transport and Rental Vehicles:

The quarterly tax for hired passenger transport vehicles, tourist vehicles, and contract vehicles will see a substantial hike, with rates increasing to Rs 4,900.

For tourist vehicles with more than 35 passengers, the tax per seat will be raised to Rs 3,000.

Omnibuses with sleeper facilities will experience an increase in their tax rates, ranging from Rs 3,000 to Rs 4,000.

Special Omni Buses:

Additional taxes have been imposed on special Omni buses allowed to operate in Chennai, Madurai, and Coimbatore areas.

Two-Wheelers:

Life Tax for new bikes is set at 10 percent for those costing up to Rs.1 lakh and 12 percent for those above Rs.1 lakh.

Old bikes, less than a year old, costing up to Rs.1 lakh will be taxed at 8.25 percent, while those more than 2 years old will face a 10.25 percent tax.

A green tax for two-wheelers less than 15 years old is Rs.750 for 5 years.

Green and Road Safety Tax:

Green tax for other motor vehicles is set at Rs.1,500 for 5 years.

The road safety tax for new vehicles varies, with two-wheelers facing Rs 375, light vehicles Rs 2,250, and other vehicles Rs 3,000.

Cars:

Cars in the price range of Rs 5 lakh to 10 lakh will be taxed at 18 percent.

High-end cars costing Rs 20 lakh and above will attract a minimum tax of Rs 4 lakh.

These tax hikes are set to affect various categories of vehicles, including cargo vehicles, taxis, passenger transport vehicles, tourist vehicles, contract vehicles, and even old and new two-wheelers. Additionally, vehicles belonging to educational institutions, construction vehicles, and cars and cabs are also included in the new tax order.

The impact of these tax hikes is expected to be felt by consumers in Tamil Nadu, with the increased prices likely deterring potential buyers and putting pressure on those in need of new vehicles.