BENGALURU: The state government has decided to exempt the Bengaluru Metropolitan Transport Corporation (BMTC) from paying the annual motor vehicle tax of Rs 120 crore for this financial year, thereby offering a lifeline to the cash-strapped organisation.
Two out of three other transport corporations in the state, North Western Karnataka Road Transport Corporation (NWKRTC) and North Eastern Karnataka Road Transport Corporation (NEKRTC) have already been exempted from paying the tax.
Speaking to , BMTC chairman M Nagaraj Yadav said the tax is paid annually by BMTC to the state for its fleet of 6,500 vehicles. “The government has agreed to our proposal following our repeated representations in this connection. It is not clear if the exemption will be for one year or five years. It will really help us if we are exempted for five years as had been done in the case of NWKRTC and NEKRTC.”
He further said, “Our latest balance sheet shows that we have a debt of over `200 crore. This exemption will definitely help us reduce our burden.”
The BMTC impressed upon the Chief Minister and Transport Minister that this exemption was required to help them face the competition from private operators and Metro trains, said Nagaraj. “Since BMTC is a public transport organisation, it needs to be brought under the purview of essential services and thereby exempted from such taxes,” he added.
H V Ananthasubba Rao, general secretary of KSRTC Staff & Workers Federation (which also includes BMTC employees), said that the association had been fighting for this exemption for BMTC for the past five years.
“Ever since its inception in 1997, BMTC has been paying 3 per cent of its revenue as MV tax. The amount saved could be used to settle at least a few of the long pending dues to its employees which total Rs 212 crore," said Rao.
Asked about these unpaid dues, the chairman said, “We are not in a position to pay the dues as the organisation spends huge sums to maintains its old buses.”