The government has decided to impose higher tax rate on vehicles from other states entering Tamil Nadu.
Introducing a bill to further amend the Tamil Nadu Motor Vehicles Taxation Act, 1974, in the Assembly on Monday, transport minister V. Senthil Balaji said at present the tax collected from other state vehicles was on par with the rate of tax collected on the corresponding vehicles in Tamil Nadu.
“Since other state contract carriages use the road more intensively when compared to Tamil Nadu vehicles and the neighbouring states are collecting higher rate of tax on the vehicles of other states, it has been decided to impose a higher rate of tax for such vehicles,” he said.
The amendment also proposes to levy lifetime tax on tourist motor cabs. Owing to difficulties in collecting quarterly tax based on number of seats for tourist maxi cabs, it has been decided to levy lifetime tax for new vehicles of that kind.
Also, use of construction equipment vehicles like excavator and road scrappers, which have increased would be levied an annual tax of Rs 10,000.