Telangana Government Hikes Life Tax From Today
The revised tax rates will come into effect from August 14, 2025.
Hyderabad: From today onwards, vehicle buyers in Telangana will have to pay more life tax as the government has decided to increase the tax between 9 and 25 per cent for different categories of vehicles. Automobile industry experts have criticised the decision, calling it harsh given the current slowdown in vehicle sales across the country.
The government order (GO) No. 53 has introduced new life tax rates from August 14. The new rates are: 9 per cent for two-wheelers costing below Rs 50,000 and 18 per cent for those priced above Rs 2 lakh. New non-transport four-wheelers such as cars and jeeps will be taxed between 13 per cent and 21 per cent. Company-owned and second personal vehicles will attract higher rates, ranging from 15 per cent to 25 per cent.
The move has dampened festive-season plans for several families who intended to purchase vehicles during Dasara and Diwali, as the revised rates are expected to add a significant burden. Domestic sales have been falling by around five per cent annually.
Vishal Thakur, assistant general manager of an automobile company, said the move will lead buyers to think twice and impact long-term sales patterns. He explained, "The last strong sales period was during October and November 2023. Since then, sales have been declining, prompting manufacturers to offer discounts and schemes to attract customers."
Increasing the life tax has also drawn protests from transport unions, who accused the government of failing to introduce any welfare programmes for transport workers while increasing taxes. Critics have sarcastically described the hike as an “Independence Day eve gift.”
According to the transport department, about 7,000 vehicles are sold each month across Telangana, with Hyderabad accounting for around 2,000 of them. In 2024–25, the department collected `6,990.29 crore in revenue, registering a 9.38 per cent growth over the previous financial year.
