The Telangana government has announced a significant hike in life tax for both transport and non-transport vehicles under the Telangana Motor Vehicle Act, 1963. As per Government Order 53, issued by the Transport, Roads & Buildings Department on August 13, 2025, amendments have been made to the third, sixth, and seventh schedules of the Act. These changes revise the tax slabs for various categories, including motorcycles, scooters, cars, jeeps, company-owned vehicles, and additional personal vehicles.

Under the revised tax structure, the rates will now vary depending on the vehicle’s cost and age. For instance, new motorcycles will be taxed between 9% and 18% based on their price, while non-transport vehicles such as cars and jeeps will attract tax rates ranging from 13% to 21%. This marks a substantial increase compared to the earlier rates, directly impacting vehicle buyers and owners in the state.

Additionally, the government has imposed steeper rates for company-owned vehicles and second personal vehicles, with taxes ranging between 15% and 25%. Officials state that the revision is aimed at boosting state revenue and aligning tax slabs with inflation and the rising value of vehicles. However, the move is expected to increase the overall cost of purchasing new vehicles in Telangana, possibly affecting sales in the automobile sector.