Andhra Pradesh Increases Life Tax by Ten Percent on New Vehicle Purchases
Andhra Pradesh Assembly approves amendment bill raising life tax on new vehicles including motorcycles cars and commercial vehicles with government expecting additional revenue for road safety improvements.
- Andhra Pradesh increases life tax on new vehicle purchases
- Assembly approves life tax increase for new vehicles
- Life tax hike expected to boost Andhra Pradesh revenue
The Andhra Pradesh government has approved a proposal to increase life tax on new vehicle purchases across the state. The decision was cleared after the Assembly passed the Andhra Pradesh Motor Vehicle Taxation Amendment Bill 2026 on Thursday.
The amendment introduces a ten percent increase in life tax for several categories of vehicles. The revised tax will apply to motorcycles cars taxis four wheeler goods transport vehicles construction vehicles and other newly purchased vehicles.
State Transport Minister M Ramprasad Reddy presented the bill in the Assembly and explained the reasons behind the move. According to the minister the tax revision is expected to generate additional revenue that will support infrastructure and road safety initiatives.
Officials estimate that the state records an average sale of around seventy three thousand vehicles every month. In a year this amounts to approximately eight lakh seventy six thousand vehicles being registered.
With the increase in life tax the government expects to collect nearly twenty two and a half crore rupees in additional revenue every month. On an annual basis this could generate around two hundred seventy crore rupees for the state.
The minister said the government is giving priority to improving road safety and transport infrastructure. The additional tax revenue will help strengthen these efforts and support development in the transport sector.
He also explained that the central government had earlier reduced the Goods and Services Tax on new vehicles from twenty eight percent to eighteen percent. The state government has decided to collect a portion of the difference in the form of a cess through the revised life tax.
The amendment bill aims to balance the reduction in GST while ensuring sufficient funds for road development and safety measures. With the Assembly approving the bill the revised life tax will now apply to new vehicle purchases across Andhra Pradesh.
