Cost of new vehicles, used vehicles to go up with revision of life tax

CHENNAI: The cost of new and old two-wheelers, four-wheelers, good carriages and other vehicles is set to increase from Thursday, as the Tamil Nadu government has notified a revised rate of life tax for these vehicles.

The revision of the life tax for motor vehicles has been effected after a decade.

As per the revised taxes, the rate of life tax for a new motorcycle would be 12 per cent, if its total cost exceeds Rs 1 lakh and 10 per cent if its total cost does not exceed Rs 1 lakh.

Earlier, it was a flat 8 per cent life tax for the new two-wheeler without any cost slab.

In the case of new cars and other new motor vehicles, the rate of life tax would be 12 per cent for vehicles costing below Rs 5 lakh. For new cars and other new motor vehicles whose costs are between Rs 5 lakh and Rs 10 lakh, it would be 13 per cent and for vehicles costing between Rs 10 lakh and Rs 20 lakh, the rate of life tax would be 18 per cent. If the cost of the vehicle exceeds Rs 20 lakh, the rate of life tax would be 20 per cent.

The life tax has been revised for tourist motor cabs and construction equipment vehicles, among others.

The transport department also hiked green tax for motorcycle from Rs 500 to Rs 750 for five years for those vehicles completed 15 years from the date of registration.

For other motor vehicles, it is Rs 1,500 for five years which was Rs 1000 earlier. For transport vehicles which have completed seven years from registration, the green tax would be Rs 750 per annum. For autorickshaws, the green tax would be Rs 250 per annum.

The road safety tax for motorcycles has been hiked to Rs 375. For light motor vehicles and other motor vehicles, it is Rs 2,250 and Rs 3,000 respectively.