MV Tax Amendment Bill passed for imposing 10% road safety cess

The Legislative Assembly connected Thursday (March 05) cleared AP Motor Vehicles Taxation (Amendment) Bill, 2026 enabling the authorities to enforce 10% roadworthy information cess connected vehicles liable to wage beingness tax. 

It is intended to mobilise fiscal resources for continuous roadworthy maintenance, corrective engineering, achromatic spot betterment and roadworthy information infrastructure.

Transport Minister Mandipalli Ramprasad Reddy said that roadworthy information has emerged arsenic a captious nationalist argumentation precedence arsenic a ample fig of roadworthy accidents, fatalities and injuries person been occurring successful the State. 

These accidents were attributable to engineering deficiencies, inadequate enforcement, mediocre roadworthy geometrics, and deficiency of protective structures, insufficient roadworthy markings and signage and lack of systematic roadworthy information interventions.

To code these issues successful a sustained manner, and keeping successful presumption the sizeable simplification successful the conveyance outgo payable by buyers owed to the slashing GST connected centrifugal vehicles by Government of India from 28% to 18%, the authorities resolved to mobilise further gross by levying a nominal cess connected conveyance owners done an amendment to AP Motor Vehicles Taxation Act of 1963.

The cess is to beryllium paid astatine the clip of registration of vehicles, and the Bill replaces AP Motor Vehicles Taxation (Amendment) Ordinance, 2026. It volition make astir ₹22.50 crore gross per period for the State exchequer.