STOCK MARKET BSE NSE

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.

Published: 06th August 2019 05:58 AM  |   Last Updated: 06th August 2019 05:58 AM   |  A+A-

Express News Service

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. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp