Tax deters migrants from bringing cars

 The exorbitant tax levied on non-Karnataka registration vehicles in the state has become a matter of worry for the migrating population, and even the transport department.

BENGALURU: The exorbitant tax levied on non-Karnataka registration vehicles in the state has become a matter of worry for the migrating population, and even the transport department. So much so, that even the department has requested the government to reduce the tax amount.  The tax burden and harassment by traffic police and the transport department has become a deterrent for many citizens, who now prefer to buy used cars, instead of bringing their vehicles from other states to Karnataka. 

The transport department collects state tax, calculated on the vehicle model, year of manufacturing (not purchase) and vehicle condition. The amount varies between 12% and 18% of the vehicle’s cost. Vehicle owners also have to pay for inspection of the vehicle. Interestingly, transport department officials admit that the amount charged is high, but claim that they are bound to collect it, under government orders. 

“The amounts were decided two years ago, and are the highest, compared to other states. Many complain to us. To encourage people, we have placed a proposal before the state government to reduce tax as it is not earning the exchequer any profit now,” a senior transport department official told TNIE. 

The government had revised the tax slab as it needed funds to implement the schemes it had announced. But it came to light that non-registered vehicles were plying and the sale of second-hand vehicles had increased. On an average, around 50,000 new vehicles are registered in every month, while a mere 500 from other states are registered, the official added.

“I purchased a car two years ago, before I was asked to move to Bengaluru for my project. I did not want to sell the car as it was my first. In keeping with the rules, I procured an NOC from the Maharashtra RTO and all clearances before bringing the vehicle here. I was then unaware that I would be charged over Rs 1 lakh as sales tax and another Rs 5,000 for verification. Transportation was also costly,” said Suhaas B, a software professional. 

However, Kiran D was saved. “Suhaas, my colleague who went through the ordeal, shared his experience and I sold my car before relocating. I bought a second-hand car instead, where the original owner had already paid road tax. It turned out to be cheaper,” he said. 

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