Hike in the motor vehicle tax has come into effect in TN now - How will it affect the prices of vehicles?
Posted on: 10/Nov/2023 9:22:57 AM
On Thursday, 8th November 2023, the motor vehicle tax hike came into effect in Tamil Nadu.
The officials from the transport department mentioned that a bill was passed to increase the tax on all motor vehicles on 11th October on the closing day of the legislative session. Accordingly, the lifetime tax was changed to 10percent for those vehicles up to Rs 1lakh and 12percent for those vehicles purchased for more than Rs 1 lakh.
Two wheelers:
For old 2 wheelers, 8.25% (not exceeding Rs.1 lakh) and 10.25% for those more than Rs 1 lakh , life time tax has been fixed at 8percent for 1 to 2 years( not exceeding Rs 1lakh) and 10percent of those above Rs 1 lakh.
Cars:
It must be noted that tax of 10% was levied on vehicles priced up to Rs 10lakh and 15% on vehicles priced above Rs 10lakhs. The tax has been revised to 12% for cars priced up to Rs 5lakhs and 13% for cars priced between Rs 5lakhs and Rs 10lakhs, 18% for those cars priced between Rs 10lakhs to Rs 20 lakhs and 20% for cars priced more than Rs 20lakhs.
Point is that on 6th November the governor approved this bill and an order to this effect was published on 7th of November. From yesterday onwards, the hike in the tax came into effect.
By this hike in the tax, the cost of vehicles would increase by 5percent now. It is now said that the buyers of low capacity vehicles would have to shell out an additional amount of Rs 7000 to Rs 8000 plus GST. The auto dealers spoke about how as per the tax hike the prices of cars, heavy vehicles and tourist vehicles have been increased.
