Lucknow, July 4 -- In order to offset potential revenue losses caused by road tax exemptions on electric vehicles, the state cabinet has approved the draft of the Uttar Pradesh Motor Vehicles Taxation (Amendment) Bill, 2025, introducing a major shift in the state's transport tax regime by moving to a one-time tax system for several categories of commercial vehicles.

The proposed amendment, aimed at enhancing revenue and simplifying the tax structure, seeks changes in Sections 4 and 9 of the Uttar Pradesh Motor Vehicles Taxation Act, 1997. Once passed by the state legislature, it will replace the existing monthly, quarterly, and annual tax system with a one-time tax on transport vehicles operating for hire or reward (commercial vehicles)-...