The recent increase in life tax on vehicles effected by the State Government is nothing short of a ruthless blow to the poor and middle-class families of Telangana, former minister and Bharat Rashtra Samithi (BRS) leader T. Harish Rao has said.
Condemning the government decision, Mr. Rao accused the government of exploiting people through oppressive taxation policies. He said Chief Minister A. Revanth Reddy had proved his deputy M. Bhatti Vikramarka’s words right that the Congress had immense experience in collecting revenue by turning this experience into a burden on the common man.
Without any justification, the Congress Government had issued GOs 53 and 54 increasing life tax on new vehicles and squeezing the poor and middle class under additional financial pressure. Purchasing even a two-wheeler costs over ₹1 lakh in the present day. Farmers, small traders and daily wage workers depend on these vehicles for livelihood and raising the life tax from 12% to 15% on two-wheelers above ₹1 lakh is nothing but extortion, the BRS leader said.
For instance, if a two-wheeler’s showroom price is ₹1.10 lakh, the previous tax was ₹13,200 and with the hike it would become ₹16,500 – an additional burden of ₹3,200 per two-wheelerke. Across Telangana, this life tax hike would extract over ₹1,000 crore from the people.
