AP Gives Shock to Car, Bike Buyers, Imposes 10% Road Safety Cess

The Andhra Pradesh Cabinet’s decision to impose a new 10 percent “Road Safety Cess” on vehicle life tax is being projected as a progressive move to improve road infrastructure. In reality, it is a classic case of shifting the government’s administrative failure onto ordinary citizens.

Every new vehicle buyer in the state will now have to pay an additional levy over and above the already steep lifetime tax. For a vehicle with a life tax of ₹50,000, the new cess adds another ₹5,000. This may appear marginal on paper, but for middle-class households, students, and small traders who depend on two-wheelers and entry-level cars, it is a significant financial hit.

A Revenue Move Disguised as Road Safety

The government claims that the cess will be transferred to the Road Development Corporation and used for road repairs, pothole filling, accident-prevention measures, and highway modernisation. The Finance Department expects the levy to fetch nearly ₹270 crore every year.

But this raises an uncomfortable question:
What were vehicle taxes, fuel taxes, toll collections, and central grants being used for all these years?

Road safety is not a new concern. The poor condition of roads, inadequate signage, and neglected shoulders have been long-standing issues across Andhra Pradesh. If these problems persist despite decades of tax collections, the solution cannot be to impose yet another charge on the same group of people.

The GST Excuse Does Not Hold Water

To counter criticism, the government argues that GST cuts have reduced vehicle prices and that the new cess will not cause much financial strain. This justification is weak.

Vehicle costs today are higher than ever, insurance premiums have increased, safety compliance has pushed up manufacturing costs, and registration fees continue to rise. In this context, claiming that a new cess will “balance out” with GST reductions shows a disconnect from the realities faced by buyers.

For many families, a two-wheeler is not a luxury; it is a necessity for commuting to work, running a small business, or sending children to college. Burdening such essential purchases with extra levies is regressive.

Punishing Buyers for Government Neglect

The most troubling aspect of the Road Safety Cess is its underlying message: citizens must pay more because the state failed to deliver basic road infrastructure using existing funds.

Instead of fixing inefficiencies, plugging leakages, and holding departments accountable, the government has chosen the easiest option — charge the next buyer at the registration counter.

A Policy That Misses the Point

Road safety cannot be achieved by a new tax alone. It demands planning, accountability, transparent utilisation of funds, and measurable outcomes. Without these, the 10 percent cess risks becoming just another line item in the budget, with no visible improvement on the ground.

For the people of Andhra Pradesh, the conclusion is inescapable:

This is not a reform. It is a revenue grab, and it comes straight out of the pockets of those who can least afford it.