The Hindu : Tamil Nadu / Chennai News : Bill on new taxation rates for vehicles tabled in Assembly

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Wednesday, May 14, 2008
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Tamil Nadu

Tamil Nadu - Chennai

Bill on new taxation rates for vehicles tabled in Assembly

Special Correspondent

CHENNAI: Transport Minister K.N. Nehru on Tuesday introduced in the Assembly a Bill on the new taxation rates for vehicles. The rates will come into effect from June 1.

(Replying to the debate on the demands for grants of the Transport department in the Assembly on April 9, he had announced that the lifetime tax on private vehicles will go up from 6 to 8 per cent. Lifetime tax was introduced for four wheelers in the State in 1999.)

The Bill to amend Tamil Nadu Motor Vehicles Taxation Act, 1974 also enables owners to pay lifetime tax for the remaining period for old vehicles (registered and plying in the State, as a consequential measure.)

In this case, if the vehicle is not older than a year, the rate of lifetime tax is 7.75 per cent of the cost of the vehicle. For each additional year that the vehicle has been on the road, 0.25 per cent is deducted from this. For instance, if a vehicle has been on the road for more than a year and less than two years, the rate of tax is 7.5 per cent. If a vehicle is older than 11 years, the tax is fixed at 5 per cent of the vehicle cost, which refers to its price at the time of purchase.

Mr. Nehru also introduced a Bill to amend the Act to collect dues with the mechanism in the Transport Department itself. Section 16 of the Act provides that any tax or penalty due under the Act may be recovered in the same manner as an arrear of land revenue.

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