ANDHRA PRADESH GOVERNMENT TO RAISE TAXES ON TRANSPORT VEHICLES TO COLLECT AN ADDITIONAL RVENUE OF Rs 200 CRORE

The Andhra Pradesh government is set to raise an additional revenue of Rs 200 crore by raising the quarterly tax on transportation vehicles.

The clearance for a quarterly tax increase was supported by the chief minister, Y S Jagan Mohan Reddy, at a recent meeting on resource mobilisation, according to official sources.

The Transport Department planned to increase the quarterly tax on transportation vehicles like taxis, trucks, and buses by 20–25%, as per sources.

The state government raised the life tax on two- and four-wheelers as well as the green tax in December of last year in order to bring in an additional Rs 400 crore annually.

In the first half of the 2022–23 financial year, income increased by 38.88% to Rs 1,215.51 crore due to the increase in the life tax, compared to Rs 875.20 crore during the corresponding period last year.

Even before the proposed enhancement, the first half of the year's quarterly tax on transport vehicles increased by 31.57 percent, from Rs 402.72 crore to Rs 529.86 crore.

According to the sources, the Transport Department's overall revenue increased by 39.15% from Rs 1,531.29 crore in the previous year to Rs 2,130.92 in the current financial year (April-September).

"Neighbouring Telangana also increased the quarterly tax on goods and passenger vehicles, along with life tax, resulting in a spike in income. So, we are now ready to rise our tax structure too on similar lines to generate an additional Rs 200 crore in revenue," the sources added.