Tamil Nadu amends state motor vehicles Act, taxes set to increase

Registration of new motor vehicles in Tamil Nadu is all set to cost more as the state Assembly on Wednesday amended the TN Motor Vehicles Taxation Act, 1974 increasing taxes.

The other Bills adopted include an amendment to the TN Protected Agricultural Zone Development Act, 2020.

The amendment included the newly formed Mayiladuthurai district in the Cauvery delta region in the protected agricultural zone. Also, "animal husbandry and inland fishery," were brought within the ambit of the term "agriculture" as defined in the 2020 Act.

Taxes under other categories --like inter-state transfer of vehicle wherein new registration is provided-- were also increased by way of amendment.

The amendment Bill said the government has not enhanced the taxes under the state Act since the year 2012. "The receipts from the taxes on vehicles are low, resulting in less revenue to the government," the statement of objects and reasons said. In order to augment the financial resources, the government has decided to amend the Act, it added.

The tax for several classes of vehicles including goods carriages, multi-axle goods carriages, trailers, tourist vehicles, omni bus and old vehicles are covered under the enhanced taxation under various slabs.

Rate of life-tax at the time of registration of new motorcycles has also been increased. The Bills were passed by a voice vote. As regards enhanced taxes for vehicles, the Congress party opposed the amendment and PMK sought re-consideration.

Speaker M Appavu adjourned the House sine die following the passage of Bills. The House was convened on October 9, when a resolution was adopted urging the Centre to direct Karnataka to release Cauvery water to the state as per the Supreme Court directions.