[one-77]

I guess it’s still lower than the 22% tax in Kerala. In TN, people at least have the roads to drive their nice cars. People from Kerala have to cross over to TN to stretch their cars’ muscles after paying the highest tax in the country.

High time we had unified pricing for cars and petrol.

[Cresterk]

10% of 5 lakhs is 50k.
10% of 20lakhs is 2 lakhs.
10% of 2 crores is 20 lakhs.

Technically speaking, expensive vehicles already pay a larger amount as tax. But it would have made more sense if they taxed it according to how much the price crossed each slab, similar to income tax.

Vehicle price 21L:

Divide it into 5L + 5L +10L + 1L

First 5L taxed at 12%
Next 5L taxed at 13%
Next 10L taxed at 15%
Next 1L taxed at 20%

This would lead to the higher tax percentages applying only to how much the price crosses over the next slab instead of a flat tax.

This means a car that costs 19L and a car that costs 21L will not have major difference in price.

Currently, a 19L car will have much lower tax than a 21L car due to flat percentages meaning manufacturers will do quite a lot of cost cutting to squeeze it into the 19.9L bracket at expense of safety and longetivity.

[jkrishnakj]

Rant:
I’m sure most states will want to follow this model. That’ll enable each of those state governments to keep giving ‘free’ everything to the people in the state. I know this statement of mine can quickly turn into a political one, but keeping all politics aside, the state coffers has to somehow fill in from somewhere if they have to keep fulfilling their doles for all the free boarders.

[Kashief]

It’s been very sad, for last couple of days I’m seeing/hearing lot of news related to price hikes in automobile.

1. TN road tax hike.
2. Chennai traffic police has implemented 40(day) and 50(night) kms speed restriction in 10 places. Offenders will get tickets through autogenerated fines. (Passed through few signals > 40kms speed on Monday to drop in Central station and not sure whether I was caught on camera
3. Third party insurance amount is been revised for 2024 with higher premium amount.
4. If I’m not wrong, TN is having highest number of tolls compare to any other state and the toll charges are already exorbitant. On top of that, it is hiked frequently nowadays.

God bless the private vehicle owners!

[Abi5hek]

I'm planning on switching to a "metro rail enthusiast" If things keep going this way.
The amount of times that 1₹ earned by a salaried individual gets taxed is appalling! Scary to think that it's only gonna keep getting steeper

[neerajku]

Governments everywhere are short sighted and these states are no different. Car sales are booming and all this welfarism is expensive, so why not extract a bit more from those who can. Dont see a respite coming. Cars are still a luxury and a taboo product in our socialist philosophy mindset of ministers and bureaucrats.

[RakishRam]

Originally Posted by true_sedan

The new tax revision proposes four slabs for cars:
1) 12% for cars upto Rs. 5 lakh
2) 13% for cars between Rs. 5 to 10 lakh
3) 15% for cars between Rs. 10 to 20 lakh
4) 20% for cars above Rs. 20 lakh

Looks like all southern states are coming up to similar levels, while Kerala is a tad mean on luxury cars at 21%. That said, the spread of tax in Kerala (see below) works slightly better for entry level cars.
I still remember buying Civic at a flat 6% road tax

Kerala Road Tax for cars

• Purchase value up to Rs 5 lakhs :9%
• Vehicles costing Rs 5 lakhs and Rs 10 lakhs :11%
• Vehicles costing between Rs 10 lakhs and Rs 15 lakhs : 13%
• Vehicles costing between Rs 15 lakhs and Rs 20 lakhs :16%
• Vehicles costing over Rs 20 lakhs :21%

[VW2010]

A salaried individual in TN if they dream of purchasing and owning a BMW M340i for 5 years then,

That salaried person is definitely earning enough to even consider that BMW to buy. They will not have any concerns about paying those extra numbers. It is not an utility for them, but a social status.

4. If I’m not wrong, TN is having highest number of tolls compare to any other state and the toll charges are already exorbitant. On top of that, it is hiked frequently nowadays.

Mostly owned by the same politicians.

[al90]

Any idea when this will come into effect, will the new tax be enforced by the 5th of July?

[84.monsoon]

Road tax is the cow to milk, as other state-determined levies such as VAT on fuel and alcohol sold through TASMAC are much more controversial areas to touch. Very few cows left that the state can milk, after GST came in.

Rather than think of how much more more they can tax cars, the TN state government needs to be thinking of new revenue streams they can tap by better leverage of public assets. Creating more public parking or charging for parking on roads is a good start. Chennai is overflowing with vehicles parked illegally, making driving and walking dangerous and unpleasant. By enforcement of parking rules and creating more paid spaces, they can have two birds with one stone. Another example is to enforce traffic signals strictly by using cameras and tickets sent to homes for running red lights. Bangalore does this well and the traffic has become much more orderly there.

[KPR]

I desire to buy cars and bikes and change them as a hobby. But the hobby which already is a costly affair, now gets more costlier. I'm better off from this hobby and keep enjoying what I have. Enough is enough. There is something called ethics that I follow. With no proper roads in my town I detest this move by the govt. No wonder sun is setting in TN. With my current 2, 4 wheelers I can continue for another decade. Bye bye new releases.

[raptor_diwan]

Originally Posted by al90

Any idea when this will come into effect, will the new tax be enforced by the 5th of July?

As of now, only a proposal has been put forward, and we might expect an official notification soon from the Home Transport, and Transport Commissionerate. However, it has not been implemented yet.

If you are planning to purchase a new car, now is the right time to do so before the prices increase.

[manjith_pm]

Link to today's news article : https://m.timesofindia.com/city/chen.../104354938.cms

This is criminal to say the least. People are bleeding with 28%+cess and add more tax on taxed ex showroom price paid by taxed money.

Absolutely disappointed with the way governments are playing Robin Hood.

Tamil Nadu already is one of the states with highest road tax. Infra improvement is meagre and to top this the bill is to be tabled in the upcoming assembly session.

[raptor_diwan]

Originally Posted by manjith_pm

Link to today's news article : https://m.timesofindia.com/city/chen.../104354938.cms

This is criminal to say the least. People are bleeding with 28%+cess and add more tax on taxed ex showroom price paid by taxed money.

Absolutely disappointed with the way governments are playing Robin Hood.

Their aim is to generate as much revenue as possible to compensate for the freebies they are offering.