Increased Motor Vehicle Taxes Boost Revenue
The transport department in Chennai has seen a significant boost in earnings following the implementation of increased motor vehicle taxes and other charges effective from November 9 last year. From January 1 to June 30 this year, the department's earnings rose by Rs 1,591 crore compared to the same period the previous year, according to official data.
Earnings Jump from Rs 3,653.65 Crore to Rs 5,244 Crore
Data from the Vahan database reveals that the transport department earned Rs 3,653.65 crore from January to June last year. This figure surged to Rs 5,244 crore in the same period this year. The earnings encompass revenues from motor vehicle taxes, fees for registration, permits, and the issuance and renewal of fitness certificates, among other charges.
Increase in Vehicle Registrations
A total of 10.16 lakh vehicles were registered at RTOs this year, up from 9.14 lakh last year. January witnessed the highest number of registrations at 1.96 lakh, followed by February with 1.85 lakh, March with 1.65 lakh, April with 1.6 lakh, and May with 1.55 lakh. June saw a relatively lower number of registrations at 1.59 lakh, compared to 1.56 lakh in the same month last year.
Revised Tax Structure
Under the revised tax structure, motorcycles valued at Rs 1 lakh and above are subject to a road tax of 12%, while those priced below Rs 1 lakh are taxed at a rate of 10%. Cars priced between Rs 20 lakh to Rs 40 lakh are now subject to a 20% road tax, while cars priced below Rs 10 lakh are taxed at 13%. Additionally, the quarterly and annual taxes for trucks and other commercial vehicles have been increased.
Key Highlights
- The transport department’s earnings increased by Rs 1,591 crore from January to June this year compared to the same period last year.
- Total earnings jumped from Rs 3,653.65 crore to Rs 5,244 crore.
- Vehicle registrations rose to 10.16 lakh this year, up from 9.14 lakh last year.
- Highest number of vehicle registrations occurred in January at 1.96 lakh.
- Revised tax structure imposes higher taxes on motorcycles and cars, with increased taxes for commercial vehicles.
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