Mini Goods Vehicles to Pay One-Time Life Tax

 Hyderabad: The state Cabinet has decided to replace the quarterly tax on mini and light goods vehicles, with a one-time life tax payable at the time of vehicle registration. The proposal is awaiting the Governor’s approval.

Once cleared, the move is expected to benefit around 3,000 vehicles every year in Telangana. Under the new system, owners will pay a life tax of 7.5 per cent of the vehicle’s cost at the time of registration.

Officials said the decision would make the process hassle-free for vehicle owners, who currently have to visit Regional Transport Authority (RTA) offices every quarter to pay the tax. Failure to pay the quarterly tax attracts a penalty of up to 200 per cent of the due amount. The change applies to vehicles with a carrying capacity of less than 3,000 kg.

The officials added that Hyderabad alone had around 40,000 light goods vehicles currently in operation. However, the life tax system will be applicable only to newly registered vehicles purchased from showrooms and will not apply retrospectively to existing vehicles.