BENGALURU: While Dasara festival began on Sunday, the state government has not announced tax exemption for tourist vehicles entering Mysuru for the festival. Sources from the state transport department maintained that the finance department has not given the nod for tax exemption as the state’s exchequer is already over-burdened due to the state’s guarantee schemes.
Federation of Karnataka State Private Transport Associations said this will have an impact on the number of tourist vehicles entering the state. They complained that the state government is aiming at only mopping up revenue after the launch of the ‘guarantee schemes’ but has failed to realise that by giving tax exemption, the inflow of tourists will be high and they can earn through indirect taxes.
Speaking to TNIE, Nataraj Sharma, nominated president of the federation, said, “For Dasara every year, around 10,000 yellow-board cars, 3,000 maxi cabs and around 1,000 buses from Tamil Nadu, Andhra Pradesh and Kerala enter Mysuru. Thousands of passengers flock to the cultural city and go around nearby tourist spots. Karnataka government for more than 15 years has been giving this tax exemption for a period of 15 days during the Dasara festival. However, this year it has decided not to grant the exemption and we feel it is due to the huge financial burden the state is incurring to run the guarantee schemes.”
The government has only calculated the loss it would incur by giving tax exemption this year, but has not calculated the direct and indirect taxes that it can reap through the tourists and the livelihood of the people who solely depend on the tourists for their income, Sharma said. A 55-seater other state bus pays around Rs 18,000 as tax and the tax varies on the type of vehicle and seating capacity, he said.
Sources from the state transport department maintained that every year they used to announce the exemption a day before the start of the Dasara festival and this time they have not announced it as they have not got approval from the finance department.