06/03/2026
The Uttar Pradesh government has enforced a new One-Time Tax (OTT) system for commercial vehicles, effective February 1, 2026, targeting cabs, taxis, and goods carriers up to 7.5 tonnes. This replaces quarterly/annual taxes with a one-time payment based on vehicle cost, aiming to simplify compliance and boost state revenue.
Key Details on OTT in Lucknow & UP (Feb-March 2026):
Applicability: Commercial vehicles, including 2-wheelers (ride-hailing), 3-wheeler motor cabs, 4-wheeler motor cabs, and goods vehicles up to 7,500 kg GVW.
Tax Structure (Based on Cost):
3-Wheeler Cabs: 7% of vehicle cost.
Cabs (≤ ₹10 Lakh): 10.5%.
Cabs (> ₹10 Lakh): 12.5%.
Commercial 2-Wheelers: 12.5%.
Rebate for Old Vehicles: A 5% tax rebate per year of prior registration is allowed, capped at 75% of the total tax.
Convenience: The system aims to eliminate the need for quarterly payments and reduces risks of fines, with state-wide Transport Fairs (Feb 20-21, 2026) held to facilitate the transition.
Electric Vehicle (EV) Benefit: 100% tax exemption for EVs purchased/registered in UP until October 13, 2027.
Penalty: Illegal conversion of goods vehicles to passenger carriers attracts a penalty of ₹2,200 per
