Pay once, drive on: One-time tax for commercial vehicles in Noida now

• TNN

• Published On Feb 5, 2026 at 11:20 AM IST

Commercial vehicle owners in Noida can now opt for a one-time tax payment, replacing the earlier system of quarterly, half-yearly or annual payments. Officials said the change is aimed at curbing revenue losses caused by non-payment and sparing vehicle owners penalties triggered by missed instalments. The one-time tax has been fixed at around 10 per cent of the vehicle’s value.

Assistant regional transport officer (Administration) Nand Kumar said that under the UP govt’s One-Time Tax (OTT) system, commercial vehicles with an unladen weight of up to 7,500 kg will be required to pay tax only once instead of making recurring payments.

As per the revised rates, two-wheelers used for commercial purposes will pay 12.5 per cent of the vehicle’s cost, while three-wheelers will be charged at 7 per cent. For four-wheeler commercial vehicles, a cost of up to ₹10 lakh will be taxed at 10.5 per cent, and those costing more than ₹10 lakh will attract a 12.5 per cent one-time tax, the ARTO said.

Goods vehicles with a gross vehicle weight (GVW) of up to 3,000 kg will pay 3 per cent of the vehicle cost, while those with a GVW exceeding 3,000 kg but not more than 7,500 kg will be taxed at 6 per cent.

Kumar said the new system will relieve commercial vehicle operators and owners from repeated tax payments and will also protect them from penalties imposed due to delayed or non-payment of tax.

Around 12 lakh vehicles are registered with the Noida transport department, which includes 3,156 commercial motorcycles, 19,800 cabs, 29,852 goods carriers, 28,000 autos, 4,548 buses, and 10,873 tractors, apart from nearly seven lakh private two-wheelers and four lakh private four-wheelers

According to officials, many commercial vehicles, especially small goods carriers, taxis, and autos, often default on periodic tax payments, leading to disputes and enforcement action. By collecting tax upfront, govt aims to plug revenue leakage and create a simpler, more predictable taxation system.>