Buying a new vehicle in Andhra Pradesh will now come with an additional cost. The Andhra Pradesh Cabinet has approved a 10 percent road safety cess on new vehicles to improve road infrastructure and strengthen safety measures across the state.
The funds collected through this cess will be used for road repairs and fixing black spots and accident prone stretches. The government expects the move to generate around Rs 270 crore in revenue annually.
To reduce the impact on buyers, the state has proposed GST adjustments. While the government says the cess has a clear public purpose, many netizens feel it adds pressure on the middle class already dealing with rising expenses.
The cess has been introduced through an ordinance amending the AP Motor Vehicles Taxation Act, 1963. It is expected to generate Rs 22.5 crore every month through new vehicle registrations.
With nearly 73,000 new vehicles registered each month and GST reduced from 28 percent to 18 percent, the Andhra Pradesh government believes the cess will not place an additional burden on vehicle buyers.
