Fees, taxes doubled, Tamil Nadu's vehicle tax revenue rises by 25% in 2024
Transport dept under DMK govt has almost doubled fees and taxes for all types of vehicles
Revenue tax chart
CHENNAI: After the steep hike in the lifetime taxes of new vehicles last year, the revenue collected from motor vehicles tax and fees increased by nearly 25 per cent to Rs 9,374 crore in 2023-24 from Rs 7,374 crore in 2022-23.
According to the transport department sources, the revenue collection from motor vehicle tax and fees in 2023-24 has surpassed the target of Rs 9229 crore, the first in over a decade.
New vehicle registrations increased to 18.88 lakh in 2023-24 from 17.35 lakh in 2022-23, a nearly 9 per cent rise. However, the revenue collection has increased by roughly 25 per cent to Rs 9,374 crore in 2023-24 from Rs 7,374 crore in 2022-23.
Even after the exemption was granted to electric vehicles, the revenue from motor vehicle fees and taxes has increased. In 2023-24, the state registered 1,00,327 e-vehicles, providing an exemption to tax amounting to Rs 390 crore.
The state government revised the road safety tax and lifetime tax for registering all new vehicles, excluding private omnibuses and auto rickshaws, from November 11 last year.
A new two-wheeler was charged a flat eight per cent on the vehicle cost as lifetime tax. Now, it has gone up to 10 per cent for vehicles costing less than Rs one lakh and 12 per cent for vehicles costing more than Rs one lakh.
In the case of new cars, the rate of lifetime tax would be 12 per cent for vehicles costing below Rs 5 lakh, 13 per cent for cars costing Rs 5 lakh to Rs 10 lakh, 18 per cent for vehicles costing between Rs 10 lakh and Rs 20 lakh, and 20 per cent for vehicle whose cost exceeds Rs 20 lakh. The previous road tax rates for two-wheelers had remained unchanged since June 2008 and for cars since June 2010. Tourist cabs and maxi cabs rates were last revised in 2012.
Since the DMK government came to power in May 2021, the revenue collection from the transport department has almost doubled by hiking various fees and taxes. In 2020-21, the revenue from motor vehicle tax and fees stood at Rs 4,561 crore. In the three years, it has increased to Rs 9,374 crore, recording a rise of 105 per cent.