They have to calculate the depreciated value of the car, not on the original price.
From Hyderabad Road Tax, .
Tax rates/rules are as below: (Please verify the latest rates from the below mentioned website or RTO)
Tax is calculated over your vehicle’s ex-showroom price at the time of purchase
(i.e. Base cost + local sales tax. E.g. Rs. 3,00,099 + 36,011).
The road tax is calculated based on the age of your car, i.e. the year in which you bought it. It is a percentage of the market value of your car as mentioned in the invoice of the car.
For new vehicles – 9%
For vehicles less than 2 yrs old – 8%
For vehicles > 2 yrs < 3 yrs – 7%
For vehicles > 3 yrs < 4 yrs – 6% and so on
-T



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