In a significant move towards enhancing road safety and infrastructure development, the Telangana assembly has passed the Motor Vehicles Taxation (amendment) Bill on Friday. The bill aims to impose a road safety tax on new vehicles across the state, as announced by Transport Minister Ponnam Prabhakar in the House.
The proposed tax rates vary for different types of vehicles. Two-wheelers will be subjected to a levy of Rs 2,000, while light motor vehicles and heavy vehicles will incur taxes of Rs 5,000 and Rs 10,000 respectively. The new taxation policy has been implemented following amendments made by the Central Government to the Motor Vehicles Act.
The amendment is part of a broader effort to improve road safety and infrastructure across Telangana. The government hopes that the additional revenue generated from the road safety tax will be utilized for the development and maintenance of roads, bridges, and other essential road safety infrastructure.
It is important to note that the new taxation policy replaces the existing quarterly tax on goods and transport vehicles with a one-time life tax payable at the time of vehicle registration. This change aims to simplify the tax structure and reduce administrative burdens for both vehicle owners and the government.
The implementation of the road safety tax in Telangana comes as part of broader efforts by state governments across India to address issues related to road safety and infrastructure development. In neighboring Karnataka, for instance, the government has recently approved plans to establish an Amity University campus in the city of Mysore, with a focus on providing world-class education in areas relevant to modern transportation systems.
Meanwhile, political parties such as the All India Majlis-e-Ittehadul Muslimeen (AIMIM) have expressed concerns over the impact of the new taxation policy on lower and middle-income vehicle owners. The AIMIM has requested the government to consider implementing measures that would alleviate the financial burden on such individuals while still achieving the objectives of road safety and infrastructure development.
As the Telangana government works towards implementing the road safety tax, it remains to be seen how it will address these concerns and ensure a balanced approach to addressing road safety issues in the state. In January 2026, the focus on improving road safety continues to be an important topic of discussion for policymakers and citizens alike.
