Telangana: Govt Life Tax Relief On Second Vehicle

The Telangana government is set to bring major relief to vehicle owners. Chief Minister Revanth Reddy has decided to abolish the 2 percent life tax on second vehicles. The transport department has already received approval, and official orders are expected soon.

Every year, an average of 7 lakh bikes and 2.57 lakh cars are purchased in the state. Around 1.91 lakh of these are second vehicle purchases. Owners currently pay a 2 percent life tax on such vehicles.

For instance, a bike priced at Rs 1.20 lakh attracts Rs 2,400 as life tax. Due to second vehicle registrations, the transport department earns between Rs 80 crore and Rs 100 crore annually. This tax has been a steady revenue source for the state.

The additional life tax was introduced to discourage second vehicle purchases and control pollution. However, many buyers register vehicles in the names of women family members to avoid the tax. This practice often leads to complications during insurance claims.

Meanwhile, the Telangana government has decided to join the Central government’s Vahan digital platform. The platform does not support additional life tax options. Developing new software would increase expenditure for the transport department.

After reviewing these issues, CM Revanth Reddy chose to remove the 2 percent life tax. The decision aims to reduce administrative burden and resolve practical challenges faced by vehicle owners.