BENGALURU:The Bangalore Metropolitan Corporation (BMTC) is banking on the State government to okay two of its proposals to shore up its sinking financial position: the waiver of this year’s Motor Vehicle Tax and a positive response to its suggestion on fuel tax.The increase effected in staff wages and the highs that diesel prices touched have caused the Corporation to suffer an annual loss of over Rs 350 crore.
BMTC Managing Director V Ponnuraj said, “We are waiting to hear from the government on two of our proposals as they will together bring down our loss by Rs 200 crore at least. It will help us run the show.”
The cash-strapped organisation pays the State a Motor Vehicle Tax of Rs 120 crore. The State gave it an exemption from payment last year. The organisation is hoping for a similar step now.BMTC had been paying the MV Tax since its inception.
The BMTC had sent a proposal earlier this year to the government calling for a levy of Fuel Tax in the City. “We have requested a levy of Rs 1 as fuel cess on every litre of petrol or diesel filled in the City. If it comes through, it will help us enormously as we suffer a loss of Rs 10 lakh per day,” a senior official said.
Principal Secretary, Transport department, B Basavaraju told The New Indian Express, “We have recommended both the proposals to the government. The Finance department will take the final call on it.”