TG Road Tax: Potential Hike Worries Telangana Motorists

Telangana motorists may face a potential road tax hike as the state government considers adopting policies from Kerala and Tamil Nadu. These states generate significant revenue through higher road taxes, with Kerala imposing up to 21% and Tamil Nadu 20%. Telangana officials have studied their systems and are preparing a report for the Cabinet Subcommittee, which will decide on possible changes.

Key Highlights

Proposed Tax Changes:

Road tax may increase for bikes priced above ₹1 lakh and cars above ₹10 lakh. Current slabs might also be modified for efficiency.

Current Tax Structure in Telangana:

Cars:

• Below ₹5 lakh: 13%
• ₹5-10 lakh: 14%
• ₹10-20 lakh: 17%
• Above ₹20 lakh: 18
• Bikes:
• Below ₹50,000: 9%
• Above ₹50,000: 12%

Projected Revenue:

Telangana's road tax revenue, currently ₹7,000 crore, could rise to ₹8,000-9,000 crore with revised rates.

Comparative Insights

Neighboring states are collecting more taxes, and Telangana may streamline slabs for better efficiency. However, officials suggest that immediate tax increases are unlikely, as discussions and final decisions may take time.

Motorists are advised to stay updated as the government deliberates on this key issue.