KOCHI: The state budget has introduced a series of tax revisions to facilitate the introduction of more stage carriers, while setting the stage for an increase in the price of mid-segment electric vehicles (EVs) and a hike in tourist bus charges.
Finance Minister K N Balagopal announced a 10% reduction in the quarterly road tax for stage carriers. While the state stands to lose Rs 9 crore from the measure, the move is expected to promote more public transport buses. However, the government also proposed to increase the tax on private vehicles – two wheelers, three wheelers and motor cars -- older than 15 years by 50% to discourage their use.
Another proposal dealt with simplifying the tax on contract carriages, but the same is expected to result in higher tourist bus charges. Vehicles with 6-12 seats will now have a unified quarterly tax rate of Rs 350 per seat, instead of the existing differential rates of Rs 280 for an ordinary seat, Rs 450 per push-back seat, and Rs 900 for a sleeper seat.
The levy on contract carriages with seat capacity of 20 and above will now be a uniform Rs 900 per seat. However, the quarterly tax on heavy passenger sleeper berth buses has been reduced from Rs 1,800 to Rs 1,500 per berth.
“We aim to boost stage carriers to enhance public transport facilities. We’ve identified 506 virgin routes across the state and the move will result in more private buses,” Transport Minister K B Ganesh Kumar said.