- By Abhishek Sheoran
- Tue, 08 Apr 2025 07:09 PM (IST)
- Source:JND
The state government has increased the one-time tax on the purchase of private vehicles by one per cent. Now, vehicles costing less than Rs 10 lakh will have to pay a tax of 9 per cent instead of 8 per cent. For vehicles costing more than 10 lakh rupees, the tax will now be 11 per cent instead of 10 per cent. However, for two-wheelers costing less than Rs 40,000, no changes have been made to the tax rate, which will remain at 7 per cent.
In a cabinet meeting chaired by Chief Minister Yogi Adityanath on Tuesday at Lok Bhawan, 15 proposals were presented, out of which 13 were approved. The two proposals from the Housing Department were sent back. The state government has amended the transportation department's tax structure to increase its revenue.
The cabinet approved the transportation department's proposal to amend the motor vehicle taxes under the Uttar Pradesh Motor Vehicle Taxation Act of 1997. Under Section 4 of the Act, the one-time tax on non-commercial, i.e., private vehicles, has been increased by one per cent. This is the first increase in the tax since 2015.
This decision by the state government is expected to generate more than Rs 413 crore annually for the transportation department. Currently, the government incurs a loss of around Rs 1,000 crore annually due to the exemption of road tax and registration fees for electric vehicles. To compensate this loss, the department has increased the tax by one per cent for now.
“Since 2015, there has been no increase in the one-time tax on private light passenger vehicles. Due to the exemption of road tax and registration fees for electric vehicles, the department has been facing a revenue loss. Therefore, a one per cent increase in tax has been implemented. However, even after this increase, the tax rates in Uttar Pradesh remain lower compared to states like Karnataka, Maharashtra, and Rajasthan” Transport Minister Dayashankar Singh said.