In dire need of funds for his numerous freebie schemes, Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy has given his nod for enhancement of various taxes by the Transport Department that could net an additional sum of Rs 400 crore to the exchequer per annum.
Consequently, life tax on two-wheelers and four- wheelers will go up by one to three per cent.
Besides, the Transport Department proposed a hike in quarterly tax on goods carriages in varied percentages and also the Green Tax on aged vehicles, highly-placed official sources revealed.
Transport Minister Perni Venkataramaiah (Nani) reportedly opposed the proposed hike in taxes, saying it would have a negative impact but the Chief Minister was determined on raising resources for his freebie schemes, the sources added.
The last hike in transport taxes was enforced exactly a decade ago when the state was united.
The relevant file has now been sent to the Finance Department and formal orders enforcing the tax hike will be issued next week, the sources said.
The Transport Department earned a revenue of Rs 3,181.78 crore in financial year 2019-20 as against the target of Rs 4,000 crore.
In 2018-19, it netted Rs 3,224.98 crore against a target of Rs 3,687.50 crore.
"We could not really achieve the targets in the last two years, basically due to drop in sale of cars in particular but it has been worse so far this year due to the coronavirus pandemic. The hike this year may only make good some of the loss though it may not exactly fetch additional revenue," a top official of the Transport Department said.