BRS flays hike in life tax on vehicles, says it's heavy burden on middle-class, poor

The Hindu

a day ago

The recent increase in life tax on vehicles effected by the State Government is nothing short of a ruthless blow to the poor and middle-class families of Telangana, former minister and Bharat Rashtra Samithi (BRS) leader T. Harish Rao has said.
Condemning the government decision, Mr. Rao accused the government of exploiting people through oppressive taxation policies. He said Chief Minister A. Revanth Reddy had proved his deputy M. Bhatti Vikramarka's words right that the Congress had immense experience in collecting revenue by turning this experience into a burden on the common man.
Without any justification, the Congress Government had issued GOs 53 and 54 increasing life tax on new vehicles and squeezing the poor and middle class under additional financial pressure. Purchasing even a two-wheeler costs over ₹1 lakh in the present day. Farmers, small traders and daily wage workers depend on these vehicles for livelihood and raising the life tax from 12% to 15% on two-wheelers above ₹1 lakh is nothing but extortion, the BRS leader said.
For instance, if a two-wheeler's showroom price is ₹1.10 lakh, the previous tax was ₹13,200 and with the hike it would become ₹16,500 – an additional burden of ₹3,200 per two-wheelerke. Across Telangana, this life tax hike would extract over ₹1,000 crore from the people.
Owning a car is an aspiration for many families and most middle-class buyers rely on loans to fulfil this dream. But the Congress Government had shattered those hopes as cars priced between ₹10-₹20 lakh would not attract 18% life tax, up from 17%. resulting in an extra burden of nearly ₹20,000 per vehicle.
For vehicles priced above ₹20 lakh and ₹50 lakh, the life tax was been raised by 2% and 3%, respectively, burdening more households. The government didn't stop there and increased taxes on commercial vehicles too from 20% to 22% for vehicles costing above ₹20 lakh and up to 25% for those over ₹50 lakh. Ultimately, this tax burden would be passed on to the market and affect the general public through increased prices of goods and services.
In addition, the Congress government is handing over road management under the HAM (Hybrid Annuity Model) to private companies for 15–20 years. To fund this model through loans, the government is quietly increasing taxes as a backdoor way to loot people under the pretext of development, Mr. Rao added.