The Andhra Pradesh Cabinet has approved a 10 percent road cess on all new vehicles to strengthen road development and safety measures. The government stated that the additional funds will be used for repairs, fixing black spots, and improving accident-prone stretches.
Officials estimate that the new cess will generate around Rs 270 crore annually. However, this move effectively offsets the benefits buyers gained from GST reductions on new vehicles in the state.
The state government already collects road tax on vehicles for similar purposes. The introduction of an additional road cess has therefore invited criticism over double taxation on vehicle owners.
The Chandrababu Naidu government had earlier highlighted GST benefits more aggressively than most BJP-ruled states. Critics now argue that the same gains are being nullified through this new levy.
Public anger has grown as Andhra Pradesh already has some of the highest petrol and diesel prices in the country. Fuel stations near the borders of Telangana, Karnataka, and Tamil Nadu openly promote cheaper refuelling compared to Andhra Pradesh.
The Telugu Desam Party had promised to reduce fuel prices after coming to power, but that assurance remains unfulfilled. This has further added to public dissatisfaction.
The government has also proposed adopting a PPP model for developing and maintaining roads, especially state highways and urban corridors. This proposal triggered criticism, forcing the government to clarify its position.
Authorities said Viability Gap Funding would be provided to limit toll collection mainly to heavy vehicles. Lighter vehicles such as two-wheelers, autos, and tractors are expected to receive exemptions.
Road infrastructure has remained a sensitive issue across administrations. The previous YS Jagan Mohan Reddy government faced backlash for neglecting roads due to focus on welfare schemes.
The current government is attempting to improve road conditions despite tight finances caused by welfare commitments. While the intent may be to strengthen infrastructure, the government cannot avoid criticism over increased financial burden on the public.
