[true_sedan]

Tamil Nadu government is all set to revise motor vehicle tax after a gap of 15 years. Currently, bikes are charged a flat 8% tax on the total vehicle cost.
The new tax revision proposes two slabs for bikes:
1) 10% for bikes upto Rs. 1 lakh
2) 12% flat for bikes more than Rs. 1 lakh

Cheaper cars are going to get expensive as per the new tax regimen.
At present cars are taxed in two slabs: 10% for cars up to Rs. 10 lakh and 15% flat for cars more than Rs. 10 lakh.
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

Bottomline is all mid-size SUVs and sedans that fall within Rs. 10-20 lakh will not be impacted. Popular bikes like Yamaha R15 and Duke 200 will become dearer by Rs. 7000-8000 owing to the tax increase. Buyers of in-demand variants of XUV 700 starting with AX5 diesel AT 5 seater which have an ex-showroom price of Rs. 20.27 lakhs will have to shell an additional Rs. 1 lakh more in taxes.

On a heavier note, this new tax revision will bring an additional Rs. 1000 crores to the government coffers while making the buyers of Innova Hycross, Innova Crysta, XUV 700, Scorpio-N, Tata Safari, Harrier, Jeep Compass, etc., bear the brunt of this revision.

Source: https://www.newindianexpress.com/sta...t-2586410.html

[ghodlur]

Originally Posted by true_sedan

Tamil Nadu government is all set to revise motor vehicle tax after a gap of 15 years.

They had an opportunity to tax based on the engine cc but chose to stick to the wrong method of taxing based on price.

The rates hike for 4 wheelers seems to be steep. I hope this does not set a precedent for other states to follow them.

[Vid6639]

This is so silly.

KA was highest road tax and there was a proposal for one india road tax. BH is 14% tax.

But the funny thing is now all states are increasing to match KA road tax vs KA reducing to match all states.

[Bhodrolok]

Are there any concessions for EVs?

Also I really think all states should start taxing diesel vehicles higher than petrol variants which in turn should be higher than Hybrid variants & zero tax for EVs, this along with stricter emission norms would help move out more polluting vehicles from our roads.

[shankar.balan]

If the govt are taking tax for purchases made with our already taxed income, they should at least allow tax payers to offset these car taxes against the income taxes already paid.
Ideally it should be one country one tax regime.

But then, all this is an Utopian Dream.

[shyampsunder]

Originally Posted by Bhodrolok

Are there any concessions for EVs?

No road tax for EVs in TN till 2025.

[Geta]

Originally Posted by ghodlur

They had an opportunity to tax based on the engine cc but chose to stick to the wrong method of taxing based on price.

:

Though this new tax rates are going to make my next upgrade a pain, I absolutely disagree with this statement of yours. For once, better sense has prevailed.

Road tax according to engine cc will be rewarding the daylight robbers who sell the 'adequate'/ 'anaemic' 1.3/1.5 liter petrol engines for Rs 46-50 lacs ex-showroom , while disincentivising the manufacturers who provide 2.0 TSI engines in the same segment at a lower price point.

I absolutely don't see a reason why a 1.6 turbo Verna owner should pay more road tax (as a percentage) than a person owning a BMW X1 or a Merc GLA.

[kaviprem]

Besh Besh!
Does this mean the gap b/w Pondy and TN is going to widen more? If so, it would result in more of cross state registration!

BTW, the news article says "Proposed", not yet written, I suppose.

[HappyWheels]

Originally Posted by kaviprem

Besh Besh!
Does this mean the gap b/w Pondy and TN is going to widen more? If so, it would result in more of cross state registration!

BTW, the news article says "Proposed", not yet written, I suppose.

Indeed it will. More tenants and ghost residents at PY.

PS: That Besh Besh reminded me of Narasu's Coffee commercial.

[PreludeSH]

Taxes and govt provided commodity prices can only keep going up. There will be an avalanche of sops coming everywhere that needs to be funded I guess.

Sad day for people who can only keep paying taxes to maintain their quality of life

[raptor_diwan]

Recently, I was thinking about the news regarding "One crore women to receive Rs 1,000 per month in Tamil Nadu," and I pondered over how the Tamil Nadu government would manage such a substantial amount, considering they need to allocate funds for it. And then I came across this thread.

[kiku007]

Originally Posted by true_sedan

At present cars are taxed in two slabs: 10% for cars up to Rs. 10 lakh and 15% flat for cars more than Rs. 10 lakh.

The new tax revision proposes four slabs for cars:
4) 20% for cars above Rs. 20 lakh

Please correct if my calculations are wrong.

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

• they'll pay ~Rs.700/day just for road tax,
• and pay road toll for pretty much any decent highway,
• and pay a myriad of taxes and running expenses,
• and get ZERO tax or depreciation benefits for the total cost of ownership amount.

One must be extremely benevolent and resilient to pay so much tax for so little in return. Makes no sense to me from a financial perspective. After a certain price point people should use an auditor to think creatively and structure their tax liability.

[WorkingGuru]

Immature move.

Its 2023, the correct way to effectively generate revenue would've been to impose congestion charges thru FasTag. Doing so would tax the usage of all vehicles and not increase just the purchase cost of new vehicles - which would invite ire from new car buyers i.e. a specific sharply critical section of society.

Even a small congestion fee charged on a very small sub-section of cars would've gotten then this revenue. This revenue would include taxi cabs & even vehicles visiting TN from other states. Lower impact on polity.

[Turbohead]

Tamil Nadu is surely trying to rake in the moolah by taxing road users - increased road taxes and also a speed limit of 40 kmph inside the city.

I wonder why. Are they trying to keep a buffer in case the central govt fails to timely pass on the GST dues to the state?

Either way, the citizens are the losers although this is a far better idea than engine capacity and length based taxation.

[raptor_diwan]

And the demand in used market is also going to skyrocket the price.