Three Bills including the Karnataka Motor Vehicles Taxation (Second Amendment) Bill, were tabled in the Karnataka Legislative Assembly on Tuesday.
With this, the state government expects to generate an additional revenue of Rs 234.34 crore through increased tax on registration of four categories of goods vehicles numbering 5,600, schools and educational institution-owned vehicles of 50,165, cabs 4,000 and electric vehicles 2,088.
The Motor Vehicle Taxation (Second Amendment) Bill gives effect to amendments made by the Union Government to the Motor Vehicles Act, 2019.
Under the new amended provisions, private vehicles are grouped into various categories, ranging between Rs 5 lakh and Rs 20 lakh-plus. These vehicles will be taxed between 13 percent and 18 percent of the cost of the vehicles.
Goods vehicles are categorized as per their weight-carrying capacity, ranging from 1,500 kg to
9,500 kg and the tax ranges between Rs 20,000 and Rs 80,000.
The cabs are categorized as per their price Rs 10 lakh, Rs 15 lakh and above Rs 15 lakh. The former are taxed at 9 percent of the cost of the vehicles and the latter at 15 percent.
Transport Minister Ramalinga Reddy said taxes for vehicles valued between Rs 10 lakh and Rs 15 lakh are proposed to be collected one time, instead of once every three months like it is done now. Following opposition from cab owners, the government decided to do away with the clause to tax old vehicles.
Now only new vehicles registered will be taxed, he added.
The primary impact is the expected surge in revenue for the state government, addressing financial needs through heightened taxes on specific vehicle categories. Notably, the bills carry a sector-specific impact as different sectors, such as transportation, education, and electric vehicle adoption, will experience varying impacts based on the amendments tailored to each category of vehicles, once passed by the Legislative and implemented.
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