Karnataka Set to Impose 3% Additional Cess on Newly Registered Transport Vehicles, Introduces Lifetime Tax on EVs Above Rs 25 Lakh
The registration of transport and commercial vehicles in Karnataka is set to become costlier as the Karnataka Motor Vehicle Taxation (Amendment) Act, 2024, has received assent from Governor Thaawarchand Gehlot on March 6 and was subsequently gazetted on March 7.
Bengaluru, March 8: The registration of transport and commercial vehicles in Karnataka is set to become costlier as the Karnataka Motor Vehicle Taxation (Amendment) Act, 2024, has received assent from Governor Thaawarchand Gehlot on March 6 and was subsequently gazetted on March 7.
Moneycontrol reported that the new legislation mandates a 3% additional cess on newly registered transport vehicles, such as taxis, buses, and auto rickshaws. This additional cess will contribute to the Karnataka Motor Transport and Other Allied Workers Social Security and Welfare Fund. ‘Your Contribution Is Relentless’: Finance Minister Nirmala Sitharaman Says ‘Bengaluru Tax Payers Are Giving Us Buoyancy’.
In addition to this, the amendment empowers the state government to impose a lifetime tax on electric vehicles (EVs) costing more than Rs 25 lakh. Such vehicles will be subject to a lifetime tax of 10% of the vehicle’s cost at the time of registration. Bengaluru Water Crisis: Karnataka Water Supply and Sewage Board Bans Usage of Drinking Water for Car Washing, Gardening and Construction .
This marks a significant shift from the state’s previous stance in March 2016, when all EVs were exempted from paying road taxes. While Karnataka continues to offer road tax exemption and zero registration fees for EV buyers, other states have opted to provide financial subsidies to promote the use of EVs.
Currently, Karnataka has one of the highest road taxes in the country, ranging from 13% to 20%. An official stated that the state currently imposes an 11% cess, which includes a 10% infrastructure cess and a 1% urban transport cess.
(The above story first appeared on LatestLY on Mar 08, 2024 10:58 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).