BENGALURU: High-end bikes, above Rs 1 lakh, is set to get more expensive as the state government has decided to increase motor vehicle tax from 12 per cent to 18 per cent of the total cost of the vehicle.
For instance, a person buying a bike above Rs 1 lakh will have to pay Rs 18,000 from April compared to earlier Rs 12,000.
Chief Minister Siddaramaiah in his budget speech said Motor Vehicle Taxes on two wheelers have not been revised since 2010. The government’s move is expected to generate an additional revenue of Rs 60 crore because of the tax on two-wheelers above Rs 1 lakh.
According to Transport Department, nearly 70 per cent of vehicles in the city are two-wheelers. While Transport Department doesn’t have the number of high-end bikes registered in the city, Bengaluru is a hub of expensive super bikes, including Ducati,Triumph, Kawasaki, Harley-Davidson and DSK Benelli.
Kevin S, an avid biker, said, “There is a huge demand for super bikes under Rs 10 lakh for its performance and stylish look. But I don’t think that an increase in the motor vehicle tax will discourage motorists from buying expensive bikes. But there are also chances that many bikers may head to neighbouring states where taxes are less to buy bikes.”
A senior transport department official said, “At present, vehicles up to Rs 50,000 will have to pay 10 per cent of total cost as tax. And, vehicles above Rs 50,000 were paying 12 per cent as road tax. Once the new proposal is implemented, bikes above Rs 1 lakh will have to pay 18 per cent as tax. But tax of other vehicles above Rs 1 lakh remains unchanged. In addition to the road tax, all vehicle owners also have to pay a cess of 11 per cent.” Wasim Memon, founder of The Drive without Borders Foundation, said, “The government’s move is daylight robbery. Karnataka already charges the highest road tax in the country”.