HYDERABAD: In a bid to curb tax evasion by out-of-state vehicles operating in Hyderabad, city transport authorities are gearing up to launch a targeted initiative. The move aims to seize thousands of vehicles from other states that have been plying in Hyderabad without paying the mandatory life tax to Telangana.
Under current regulations, any vehicle from outside the state must pay tax to Telangana if it remains within the state for more than 30 days. C Ramesh, Joint Transport Commissioner, Hyderabad, emphasized that while short-term visits are permissible, vehicles overstaying beyond the stipulated period will face impoundment and penalties for tax evasion. “The taxation rates vary based on the type and age of the vehicle,” explained Ramesh. For instance, taxes for two-wheelers and three-wheelers range from 1% to 12% of the vehicle’s value, while for four-wheelers, the range is 6.5% to 18%. Larger vehicles accommodating up to 10 passengers attract taxes ranging from 8.5% to 20%.
Moreover, Section 47 of the Motor Vehicles Act (1988) mandates that after one year of use in a new state, vehicle owners must obtain a new registration plate from the local authority and pay the requisite taxes. This process involves securing a No Objection Certificate (NOC) from the previous state’s transport authority and applying for new registration in Telangana. “The upcoming crackdown underscores our commitment to ensuring compliance with taxation laws,” added Ramesh. Special checkpoints will be established along major routes in Hyderabad to monitor and impound non-compliant vehicles effectively. The initiative aims to uphold fiscal integrity and fairness across the transportation sector while discouraging tax evasion practices. As Hyderabad prepares to implement these measures, vehicle owners are advised to adhere strictly to tax regulations to avoid legal repercussions. The enforcement drive is set to commence shortly, reflecting the authorities’ proactive stance in safeguarding state revenue and promoting equitable taxation practices within the city.
