TS mulls higher levy on diesel vehicles

Move aimed at controlling pollution, say RTA officials

The Telangana state government is seriously considering a proposal to levy an additional tax on diesel vehicles, in order to discourage the purchase such types of vehicles to control pollution.

The proposal has been submitted to Chief Minister K. Chandrasekhar Rao for his approval.

At present, 12 per cent tax is levied on the purchase of diesel vehicles. An extra two per cent is levied on the purchase of a second diesel vehicle by the same owner. The government may soon levy an additional tax on the purchase of both first and second diesel vehicles. It may also scrap the extra two per cent tax that is currently levied on the purchase of a second petrol vehicle.

The TS Road Transport Authority has submitted proposals regarding these changes to the government. The proposals are pending with the Chief Minister’s Office.

The Congress government in undivided AP had introduced an extra two per cent tax on the purchase of a second vehicle in order to discourage people from buying multiple vehicles.

But the move failed to serve its purpose, as no major drop in the purchase of second vehicles was observed. The move caused an inconvenience to people with the same name, as the online system often showed that a second vehicle was being registered by an owner, when in fact it was the first. The extra 2 percent augmented the government’s earnings by less than `3 crore per year.

“We have proposed that the government should levy an additional tax on the purchase of diesel, both first and second. This will encourage people to buy petrol vehicles. We have also sought to scrap the extra 2 percent tax that is levied on the purchase of a second petrol vehicle. This will further attract buyers towards petrol vehicles,” official sources said.

The sources said that the CM was in favour of the proposal and is expected to approve it soon.

Several states have been trying to implement measures to discourage purchase of diesel vehicles following Supreme Court orders regarding the control of vehicular pollution.