Harish Rao calls vehicle life tax hike blow to poor, middle-class

Former Minister and senior BRS MLA T Harish Rao on Thursday launched a scathing attack on the Congress government for increasing life tax on vehicles, calling it a brutal assault on the poor and middle class. The hike, implemented through GO 53 and 54, was placing additional burdens on those already struggling with high living costs, he said.

Reminding that Deputy Chief Minister Mallu Bhatti Vikramarka had once said the party had immense experience in raising revenue, he said Chief Minister A Revanth Reddy was now proving it true.

The revised rates increase life tax on two-wheelers priced above Rs 1 lakh from 12 per cent to 15 per cent.

“Today, no two-wheeler costs less than Rs 1 lakh. Farmers and small traders depend on them for their livelihoods. Earlier, on a two-wheeler costing Rs 1.10 lakh, the tax was Rs 13,200, but now it will be Rs 16,500. This is an outright attack on the poor and middle class,” Harish Rao said.

For cars, the life tax for vehicles priced between Rs 10 lakh and Rs 20 lakh has been raised from 17 per cent to 18 per cent, adding nearly Rs 20,000 in extra cost.



Vehicles priced above Rs 20 lakh will now incur a 2 per cent higher tax, and those above Rs 50 lakh will see a 3 per cent hike.

“Buying a car is a dream for many middle-class families. Whether through loans or savings, they work hard for it. The Congress government is crushing that dream,” he charged.

Commercial vehicles have also been hit, with taxes raised from 20 per cent to 22 per cent for those priced above Rs 20 lakh and to 25 per cent for those above Rs 50 lakh. The BRS leader warned that these hikes will directly push up market prices, hurting consumers further.

He criticised the government’s plan to hand over roads to private companies for 15 to 20 years under the HAM model, stating the tax hike was aimed at raising funds for this misguided approach. “It is shameful to quietly raise taxes while claiming no tolls will be collected from companies,” he said.

Harish Rao accused Revanth Reddy of believing taxation was the only way to raise income instead of encouraging economic growth, and of being unable to raise loans. “We strongly condemn this evil practice,” he declared.