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 U.P. 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 commercial vehicles. The proposed amendment, aimed at enhancing revenue and simplifying the tax structure, seeks changes in Sections 4 and 9 of the U.P. 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)-such as two-, three- and four-wheeler motor cabs, maxi cabs, goods vehicles up to 7,500 kg, construction equipment vehicles, and specially designed vehicles. Officials said while EVs were being promoted under the UP Electric Vehicle Manufacturing and Mobility Policy, 2022, the resultant tax reliefs had negatively impacted transport department revenues. "The shift is intended to stabilise and increase state income, as U.P. pursues its target of becoming a $1 trillion economy," a government spokesman said. The amendment is expected to rationalise taxation and support long-term revenue sustainability....