The State government has decided to collect Motor Vehicle tax on e-rickshaw and e-cart vehicles.
The government proposes to levy either quarterly or life-time tax on these vehicles. An Ordinance had been promulgated in this regard in June as the Assembly was not in session then.
The government placed it before the Assembly on Thursday to make suitable amendments to the A.P. Motor Vehicles Taxation Act, 1963. Transport Minister K. Atchannaidu, in a statement made in the House, said that e-rickshaw and e-cart vehicles had come into existence in 2015. There was a provision to levy tax under Section 3 of the A.P. Motor Vehicles Taxation Act, 1963.
The government had given an exemption to the battery-operated vehicles for a period of five years from the date of registration. As no tax was being levied on these vehicles, the government decided to levy a one- time tax, either a life-time tax or quarterly tax, he said.
For auto-rickshaws, the quarterly tax would be ₹105 per vehicle with a seating capacity of four in all. Tax compliance was very low as many of the owners fall under the low-income group. Hence, the neighbouring States switched to the life-time tax. It was proposed that a lump sum / life-time tax might be fixed at 2% of cost of vehicle in respect of new vehicles and 1 to 1.5% for old vehicles, based on their age.
For light goods vehicles of up to a laden weight of 3,000 kg, a quarterly tax of ₹750 on average was proposed. A lump sum tax at 7% of the cost of vehicle was proposed. In respect of light goods vehicles in use, tax was proposed to be fixed between 1% and 6.5%, the Minister said.