New vehicle owners in Telangana to pay ₹2,000 to ₹10,000 as road safety cess from Mar 1

Hyderabad: Telangana government has decided to impose a Road Safety Cess on the purchase of new vehicles from March 1.

Orders to this effect were issued by the Transport Department on Wednesday, exercising the State’s powers under the Motor Vehicles Act relating to taxation.

Under the new rules, buyers of non-transport vehicles will have to pay an additional cess ranging from ₹2,000 to ₹10,000 at the time of vehicle registration.

The government said the move aims to mobilise funds for strengthening road safety measures across the State.

Cess to be collected at registration

The Road Safety Cess will be collected when the vehicle is registered. The levy applies to two-wheelers, cars, personal vehicles, and passenger autos falling under the non-transport category.

Officials estimate that the cess will generate around ₹270 crore annually, which will be utilised for road safety initiatives, infrastructure improvements, and accident prevention measures.

Three-wheeler goods vehicles brought under life tax

Until now, three-wheeler goods vehicles have been subject to quarterly tax. The Transport Department has now brought them under the Life Tax system, streamlining the taxation structure.

Exemption for agricultural vehicles

Tractors and trailers used exclusively for agricultural purposes have been exempted from the Road Safety Cess.

Road Safety Cess:

Vehicle-wise rates

Two-wheelers: ₹2,000

Light motor vehicles (including cars): ₹5,000

Other vehicles: ₹10,000

Cars fall under the light motor vehicle category. Passenger autos with a seating capacity of 4 to 7 persons will be treated under the “other vehicles” category, officials said.