Report by ; andhraportal

Big Shock for Motorists in AP: Govt Tables Bill for 10% Road Safety Cess on Vehicles

Motorists in Andhra Pradesh may soon face an additional financial burden as the state government has introduced a bill in the Assembly proposing a 10% road safety cess on vehicles. The move aims to strengthen road safety infrastructure and reduce accidents across the state.

AP Govt Introduces New Road Safety Cess

The Andhra Pradesh Legislative Assembly was presented with an amendment bill to modify the Andhra Pradesh Motor Vehicles Taxation Act, 1963.

According to the proposal, vehicle owners who pay lifetime tax during registration will also have to pay an additional 10% road safety cess. This cess will be collected along with the life tax when a vehicle is purchased and registered.

Why the Government Introduced the Cess

Transport authorities say the new cess is aimed at improving road safety and reducing accident-related deaths. The funds collected will be used for:

Improving accident-prone “black spots” on roads
Developing road safety infrastructure
Strengthening traffic management and safety measures

The government estimates the cess could generate around ₹22.5 crore per month and nearly ₹270 crore annually for road safety initiatives.

Extra Burden for Vehicle Buyers

If the bill becomes law, people buying new vehicles in Andhra Pradesh will have to pay more during registration. For example:

If the life tax on a vehicle is ₹12,000, the new cess will add ₹1,200 more.
The cess will apply to vehicles that fall under the lifetime tax category, such as private two-wheelers and cars.

While officials say the impact on buyers will be limited, many vehicle owners fear the move will increase the overall cost of purchasing vehicles in the state.

FAQs

1. What is the new vehicle cess proposed in Andhra Pradesh?
The AP government has proposed a 10% road safety cess on vehicle life tax, which will be collected during vehicle registration.

2. Why is the government introducing this cess?
The cess aims to create a dedicated fund for road safety improvements, accident prevention, and infrastructure upgrades.

3. Will the cess apply to all vehicles?
It will mainly apply to vehicles that pay lifetime road tax, such as private cars and two-wheelers.

4. How much revenue is the government expecting from the cess?
Officials estimate the new levy could generate about ₹270 crore per year for road safety initiatives.