MV tax to be charged based on floor area in TN

Our Bureau Updated - November 15, 2017 at 11:12 AM.

tourist

Tourist vehicle operators in Tamil Nadu will soon have to pay motor vehicle tax on the basis of the floor area rather than number of seats.

The State Government has also decided to hike the annual tax on construction equipment vehicles such as excavators and cranes.

The Transport Minister, Mr Senthil Balaji, introduced a Bill to amend the Tamil Nadu Motor Vehicles Taxation Act 1974 to provide for these changes in the vehicle tax.

Tourist vehicle operators will pay life tax on new vehicles with a floor area of more than six square metres. Old vehicles, too, will pay vehicle tax based on floor area but will continue with quarterly payments.

The Bill, the Tamil Nadu Motor Vehicles Taxation (Amendment) Act 2012, provides for the new system to take effect from April 1, 2012 once the law comes into force.

Tourist motor vehicles are now charged a quarterly tax based on the number of seats. But there are difficulties because a variety of tourist vehicles with varying numbers of seats come into operation, the Bill said.

The floor area is described as the total area measured as length multiplied by breadth minus a 10 per cent standard deduction.

The State Government has also decided to levy an annual tax of Rs 10,000 on construction equipment. The numbers of such vehicles are on the increase but the annual tax now levied is minimal.

The Amendment explains that a construction equipment vehicle is a non transport vehicle whose main function is ‘off-highway' but can be driven on the road at a speed not exceeding 50 km an hour

This provision does not include vehicles that are purely ‘off-highway' and are designed or adapted for use only in enclosed premises such as factories and mines.

They are not equipped to travel on public roads.

Private services vehicles that carry passengers in connection with the trade or business of the vehicle owner will pay quarterly tax on seat basis; reserve carriages that are now taxed 25 per cent lower than regular stage carriages now will be levied a separate tax when they are used on special occasions; and vehicles from out of State will be taxed at a higher rate.

Published on April 9, 2012 15:29