UP Increases Road Tax by 1% on Purchase of Private Vehicles

 

The Uttar Pradesh government has approved a one percent hike in one-time road tax on the purchase of private vehicles. Vehicles priced up to ₹10 lakh will now be subject to an 8% road tax, up from the previous 7%, while those priced above ₹10 lakh will incur an 11% road tax instead of 10%.

Transport Minister Dayashankar Singh announced the cabinet’s approval of the proposal. The decision was made following recommendations in a cabinet meeting chaired by Chief Minister Yogi Adityanath.

Vehicles priced up to ₹40,000, primarily two-wheelers, will continue to attract the previous tax rate of 7%.

Revised Tax Slabs:

Vehicle Type	Previous Tax	New Tax
Two-wheelers up to ₹40,000	7%	7%
Two-wheelers above ₹40,000	10%	10%
AC four-wheelers up to ₹10 lakh	8%	9%
AC four-wheelers above ₹10 lakh	10%	11%

The changes have been made under the UP Motor Vehicle Taxation Act, 1997, which governs road tax collection in the state.

₹413 Crore Additional Annual Revenue Expected

According to the Transport Department, the tax increase is expected to generate an additional ₹413 crore in annual revenue. The government clarified that the hike would not affect lower-income consumers, particularly those buying entry-level two-wheelers.

The move comes in light of increasing vehicle registration in the state and the need to boost infrastructure development. The previous revision in road tax was made in 2015.