A.P. govt. to amend MV Taxation Act to include road safety cess

The Andhra Pradesh Cabinet has approved the introduction of the Andhra Pradesh Motor Vehicles Taxation (Amendment) Bill, 2026 in the State Legislature, paving the way for a dedicated “Road Safety Cess” on vehicle registrations.

The decision was taken at the Cabinet meeting chaired by Chief Minister Nara Chandrababu Naidu at the Secretariat in Amaravati on Tuesday. The proposed legislation will replace the Andhra Pradesh Ordinance No. 1 of 2026 and formally amend the existing Motor Vehicles Taxation Act.

According to officials, the Bill seeks to insert a new Section 3-C titled “Levy of Road Safety Cess.” Under this provision, an additional 10% tax will be collected as Road Safety Cess on the life tax payable at the time of registration of motor vehicles in the State.

The government stated that the cess is intended to create a dedicated fund to strengthen road safety infrastructure, enhance enforcement mechanisms, and reduce accident-related fatalities and injuries. The proceeds are expected to support measures such as black spot rectification, improved road engineering standards, traffic management systems, and public awareness campaigns.

The Cabinet has approved the withdrawal of criminal prosecution and disciplinary proceedings initiated against Forest Department officials, Water Resources engineers and agencies involved in the 2014–19 “Neeru-Chettu” works.

Travel sops to PWDs

It has approved extension of free travel benefits to Persons with Disabilities (PWDs) in buses covered under the ‘Stree Shakti’ scheme. The decision applies to those defined under Section 2(zc) of the RPWD Act, 2016, including individuals with 40% or more disability.

The Cabinet also cleared continuation of 50% fare concession in City Ordinary, Metro Express, Palle Velugu, Ultra Palle Velugu and Express services. The existing concessions in Non-Stop, Inter-State, Saptagiri Express and Ultra Deluxe buses will continue. Eligible PWDs and their escorts will be covered, with subsidy reimbursement to APSRTC and APPTD based on actual claims.

The Cabinet also cleared proposals brought by the CRDA for development of infrastructure.