The Tamil Nadu Motor Vehicles Taxation (Amendment) Act, 2023, which will increase the rate of life tax on both old and new two-wheelers, four-wheelers, goods carriers, and other vehicles, is scheduled to come into effect from November 9.
According to a notification from the Home Department, Tamil Nadu Governor R.N. Ravi announced November 9, 2023, as the date on which the Act, would come into force. The Tamil Nadu Legislative Assembly had last month adopted a Bill to amend the Tamil Nadu Motor Vehicles Taxation Act, 1974. Mr. Ravi gave his assent to it earlier this week.
The rate of life tax for a new motorcycle will be 12% if its total cost exceeds ₹1 lakh and 10% otherwise. In case of new cars and other motor vehicles, the rate of life tax will be 20% if the cost of the vehicle exceeds ₹20 lakh. For new cars and other new motor vehicles, whose costs ranges between ₹10 lakh and ₹20 lakh, the rate of life tax will be 18%, and for vehicles costing ₹5 lakh-₹10 lakh, it will be 13%. In case of vehicles below ₹5 lakh, the life tax rate will be 12%.
