Investigation Launched as 75 Commercial Vehicles in Lucknow Blacklisted for Low Tax Levies
75 commercial vehicles blacklisted over suspiciously low levies in Lucknow
Hindustan Times
Image: Hindustan Times
In Lucknow, Uttar Pradesh, authorities have blacklisted 75 commercial vehicles due to suspiciously low tax assessments ranging from zero to ₹2,025. The state government’s new one-time tax system, introduced in January 2026, is under scrutiny as officials investigate discrepancies in tax calculations linked to vehicle purchase values.
- 0175 commercial vehicles in Lucknow were blacklisted due to abnormally low tax amounts.
- 02The one-time tax system was implemented in January 2026 under the Motor Vehicles Taxation (Amendment) Act, 2025.
- 03Some vehicles had tax liabilities as low as ₹1, leading to zero payable tax after rebates.
- 04Authorities are investigating incorrect entries in the VAHAN software that calculates tax based on vehicle costs.
- 05Transport operators have expressed concerns over the financial burden of upfront tax payments.
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A review of Uttar Pradesh's new one-time tax system has revealed significant discrepancies in tax assessments for commercial vehicles in Lucknow. Authorities blacklisted 75 vehicles after discovering tax amounts as low as ₹1, which, after rebates, resulted in zero payable tax. This anomaly was identified during a routine check at the regional transport office (RTO) and has prompted a detailed investigation. The revised tax system, introduced on January 30, 2026, allows for an 8% annual rebate for older vehicles, but officials are concerned about how such low tax liabilities were calculated, particularly for vehicles that are often deregistered after 20 years. Preliminary findings suggest that incorrect vehicle purchase values were entered into the VAHAN software, which is responsible for tax calculations. Transport operators are worried about the shift to a one-time upfront tax payment model, which replaces the previous quarterly payment structure and could disrupt their business operations.
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The blacklisting of these vehicles may lead to financial strain on transport operators who are now required to pay significant upfront taxes, potentially disrupting their business operations.
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