[sgautam31]

Hi All,

I have come to know from a dealer that the road tax slabs are being introduced in Telangana as below: -

Ex-Showroom Price:

Below 5 Lakhs - OLD Slab (12%) - NEW Tax (13%)

5 Lakhs - 10 Lakhs - OLD Tax (12%) - NEW Tax (14%)

10 Lakhs - 20 Lakhs - OLD Tax (14%) - NEW Tax (17%)

Above 20 Lakhs - OLD Tax (14%) - NEW Tax (18%)

If the second vehicle found 2% tax to be paid extra for any car.

Does anyone know when is this going to be implemented?

Thanks in advance.

[ranjith_cbz]

I too read as such from VW exec WA forwards and status messages as persuasion to buy the vehicle soon before this hike. I think there is no official GO yet but state govt might be thinking on such lines and RTO is preparing for the same.

Looks to be a steep hike for 10L-20L & 20L above brackets and combine with second vehicle clause then you are looking at 20% road tax and on top of that you have to pay exorbitant tolls across highways. Makes you wonder what road tax is taking care of when almost all highways are toll roads now

Driving is becoming a luxury each passing day

[JoseVijay]

Originally Posted by sgautam31

Hi All,

I have come to know from a dealer that the road tax slabs are being introduced in Telangana as below: -


Does anyone know when is this going to be implemented?

Thanks in advance.

The new Tax slab came into effect from 09 May, 2022, Monday.

[vvrchandra]

Here is the confirmation in today's The Hindu newspaper.

[Vid6639]

Telangana joins KA in being the highest road tax state. So now Telangana road tax slabs are identical to Karnataka and moreover 2% more if 2nd car in the house.

Looks like all India one nation road tax thing might mean everyone will adopt the highest state taxes eventually.

The 2nd car having 2% will be a nightmare since that would mean anyone selling the first car has to ensure the transfer is done before buying a new car to save that 2% and we all know the process and time needed for RTO to update ownership transfer.

[vvrchandra]

Originally Posted by Vid6639

Telangana joins KA in being the highest road tax state. So now Telangana road tax slabs are identical to Karnataka and moreover 2% more if 2nd car in the house..

Andhra Pradesh too has similar road taxes now, after revision a month or two earlier IIRC.

[srvm]

Originally Posted by Vid6639

.....
The 2nd car having 2% will be a nightmare since that would mean anyone selling the first car has to ensure the transfer is done before buying a new car to save that 2% and we all know the process and time needed for RTO to update ownership transfer.

Wouldn't the typical Indian citizen register the 2nd car of the family as 1st car of spouse/child/parent/relative and get away with this extra 2% tax?

[Vid6639]

Originally Posted by srvm

Wouldn't the typical Indian citizen register the 2nd car of the family as 1st car of spouse/child/parent/relative and get away with this extra 2% tax?

Yes but that's the alternate option and now which relative will let you register in their name if the govt. is checking on cars owned and if they want to buy a car then they will pay 2% on their own car.

Secondly there will be a good amount of people with 2 cars already so when they want to change any 1 car in the house then they will still need to go through the ordeal. The people buying a 2nd car would most likely already have a 2 car garage.

Obviously with this rule you will see people doing all this by buying 2nd car in spouse or parent name to bypass the 2%. Eventually it will run out.

[GreasyCarb55]

And another masterstroke by the government (sarcasm) pushing me towards motorcycles and used cars, with governments pushing high taxes on both cars and the fuel most of them need to run on I feel like it's best to invest my money into motorcycles (if I'm looking for speed) and keeping an old Baleno/Esteem swapped Zen as a project car.

With how all of this is going down and my plans to move abroad for a masters degree looks like I won't be able to own a car newer than 2014 or anything worth over 8 lakh in India.

[Cresterk]

Originally Posted by srvm

Wouldn't the typical Indian citizen register the 2nd car of the family as 1st car of spouse/child/parent/relative and get away with this extra 2% tax?

I wonder if they will go after them as tax avoidance.

[raiuday]

Government is only trying to squeeze every penny off our pockets in all possible ways while we already are paying GSTs, Cess in the Ex-Showroom price, that’s after paying income tax, alongside the huge taxes on fuel to keep our vehicle running, paying inflated toll fee, temporary registration fee and the road tax which already is high, now this excess 3% on motorcycles and cars.

The 9% road tax on two wheelers hardly is on 15% of motorcycles while 13% for four wheelers is close to the same numbers. So much for the democratic principle ‘of the people’ while it actually is tasked only to ‘half the people’s pockets’?

[AutoNoob]

Originally Posted by Vid6639

Telangana joins KA in being the highest road tax state. So now Telangana road tax slabs are identical to Karnataka and moreover 2% more if 2nd car in the house.

Originally Posted by Cresterk

I wonder if they will go after them as tax avoidance.

"Milk the common man/ woman" is the motto of any government.

Typically, for vehicles above 15L, the GST slab is 45%+. Add to that 17%+ RTO Tax & 4% insurance, customer ends up paying almost 75%+ more on ex-factory price.

[dsuman]

This 2% rule already existed in AP and Telangana. Road tax was a flat 12% below 10L ex showroom and additional2% for 2nd vehicle. Above 10 L it used to be 14%. Additional vehicles means a 2 wheeler or 4 wheeler.

So dont read into a second vehicle as just a car. Second vehicle here refers to any motor vehicle.

[shyampsunder]

The really sad part about road tax is that it is essentially tax on tax. We are already paying huge GST of around 50% on most cars above 15L. This road tax is calculated on ex-showroom price which includes GST. So tax impact is much higher.

The only silver lining to this is that EVs become more attractive with such taxation. I am hoping to buy an EV before the favorable road tax and GST clauses are removed.

[vamship]

Originally Posted by Vid6639

Telangana joins KA in being the highest road tax state. So now Telangana road tax slabs are identical to Karnataka and moreover 2% more if 2nd car in the house.

Looks like all India one nation road tax thing might mean everyone will adopt the highest state taxes eventually.

The 2nd car having 2% will be a nightmare since that would mean anyone selling the first car has to ensure the transfer is done before buying a new car to save that 2% and we all know the process and time needed for RTO to update ownership transfer.

It still doesn't touch Karnataka, as it has additional 11% cess on the road tax paid, which makes effective tax for 10 L - 20 L as 18.5 %