Uttar Pradesh Rolls Out New Tax Hike: What It Means for Car and Bike Buyers

The state government has given a big shock to people buying new bike or car. Yogi Adityanath’s government has decided to increase the one-time tax.

This decision was taken in the recent Yogi cabinet meeting. Which can become a new challenge for people wishing to buy vehicles in the state.

Increase in one time tax, Yogi cabinet’s decision

The state government has changed its policy and increased the one-time tax on various types of vehicles. Due to this, consumers buying a new bike or car will now have to pay more tax than before.

This decision has been taken by the government to increase the state’s revenue and simplify the process related to vehicle registration. The Yogi Cabinet approved the Transport Department’s proposal to increase the tax on Tuesday.

Till now, 7% tax was levied on four wheeler non AC vehicles costing less than 10 lakhs. Now it will be 8%. Similarly, the tax on AC cars costing less than 10 lakhs will now be 9%, up from 8%.

On the other hand, vehicles costing more than 10 lakhs will now be taxed at 11 percent instead of 10. In other proposals, a 300-bed hospital will be built on the surplus land of Sitapur Eye Hospital in Ayodhya district.

The hospital will be constructed on 12798 square meters of land, while the interchange at the crossing of Yamuna and Eastern Peripheral Expressway in Afzalpur will be constructed by NHAI.

Land has been allotted for the construction of a medical college along with a district hospital in Hathras.6.675 hectares of land on Agra-Aligarh road has been given at the 1987 rate.

He informed that under this, 150 posts out of total 1307 posts have been upgraded and included in the previously created 255 posts of Assistant Audit Officer, making a total of 405 posts of Assistant Audit Officer and 464 posts out of 1307 posts have been upgraded and included in 436 posts created as Auditor.

That means the total number of lower posts has become 900. Under the process of restructuring, the lower posts will become more and the higher posts will gradually decrease.

Shock for those buying new bike or car in UP

Apart from this, a proposal of the Finance Department was also put forward in the meeting under which the proposal for reorganization of Uttar Pradesh Subordinate Cooperative Societies and Panchayat Audit Service Rules 2025 was approved.

Till now the promotion posts were more and the lower posts were less. Now this pyramid has been corrected.Under this, the lower posts have now been increased. Finance and Parliamentary Affairs Minister Suresh Khanna said that a total of 15 proposals were placed in the meeting, out of which 13 were approved.

He said that this increase of Rs 105 in duty allowance will be considered effective from April 1, 2025.He said that this will incur an additional expenditure burden of Rs 75 crore 87 lakh 50 thousand on the state government.

He said that there are a total of 34092 PRD volunteers in the state, will get the benefit of this. After the implementation of the proposal, the duty allowance of PRD volunteers will increase by Rs 3150 per month on the basis of 30 days of attendance. Yogi government has approved a total of 13 proposals on Tuesday.

The government has increased the daily duty allowance of Provincial Guard Force (PRD) volunteers by about 26 percent. Now they will be given Rs 500 as duty allowance instead of Rs 395. 35 thousand PRD jawans of the state will be able to avail this benefit.

Among two-wheelers, the tax on two-wheelers costing less than Rs 40,000 will remain at 7% as before. But vehicles costing more than Rs 40,000 will now be taxed at 9% instead of 8%.

The government was incurring a loss of up to Rs 1000 crore due to giving several concessions on electric vehicles. Increasing the tax will generate an income of Rs 412 crore. At the same time, transport tax on taxi (four wheeler) vehicles has been reduced.

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