Hyderabad: Telangana government is likely to remove the two per cent additional tax on the purchase of second vehicle and proposes to impose additional tax on diesel vehicles.

The erstwhile Andhra Pradesh government in 2008 had introduced the additional tax of two per cent on those who purchased second vehicle. 

The idea was to discourage the individuals from going in for additional vehicles and to control vehicular pollution. 

According to Transport department, every year over 6000 new vehicles are being added, leading to problems in traffic management and spurt in pollution levels. 

But the two percent tax system had led to great inconvenience to the vehicle owners and also to the department. 

A senior official in the department told The Hans India that the biggest problem was with the taxation software. The official said that, the names of the Muslim minority individuals were identical. 

“Many a times the names of father and sons are identical like Mohammad, Abdul etc. Whenever there is an identical name, the system shows that these individuals already own a vehicle and charges two per cent additional tax. 

The vehicle owners object to it and say that they don’t have even one vehicle and how can the department charge additional tax. The problem was more in the districts of Hyderabad and Rangareddy,” said the official. 

The sources said the revenue generated from the 2 per cent tax was between Rs 2 to 3 crore but was causing inconvenience to the vehicle buyers and also to the department.  

Hence the department has suggested to the government to increase the tax rate on diesel vehicle if needed. Those who want to have a second vehicle can then go in for petrol vehicle, said the official. 

The source said that the Chief Minister had in principle agreed to the proposal but is yet to give his final nod. 

There are over 89 lakh vehicles in Telangana including 3.39 lakh auto rickshaws, 7,114 contract carriages, 21,913 educational buses, 3.62 lakh goods carriages, 22,450 maxi cabs, 10.6 lakh motor cars, 66.4 lakh motor cycles, 3.29 lakh tractors and trailers.