Daijiworld Media Network - Bengaluru

Bengaluru, Mar 8: The cost of registering transport and commercial vehicles in Karnataka is set to rise with the enactment of the Karnataka Motor Vehicle Taxation (Amendment) Act, 2024.

Governor Thaawarchand Gehlot has granted assent to the act on March 6, which was subsequently gazetted on March 7.

The Act mandates a "3% additional cess levy and collection on transport vehicles for the Karnataka Motor Transport and other allied workers social security and welfare fund."

Transport department officials clarified that the 3% additional cess applies exclusively to newly registered transport vehicles, such as yellow board commercial vehicles, including taxis, buses, and autos.

Lifetime tax on EVs above Rs 25 lac

In addition to the cess, the amended taxation law empowers the state government to impose a lifetime tax on electric vehicles (EVs).

The provision states, "Motor cars, jeeps, omnibuses, and private service vehicles running on electricity, with a vehicle cost exceeding Rs 25 lac will be subject to a lifetime tax of 10% of the vehicle's cost at the time of registration of a new vehicle."

While Karnataka had exempted all EVs from road taxes in March 2016, the recent amendment introduces a lifetime tax for premium EVs costing more than Rs 25 lac.

Despite the road tax exemption, Karnataka remains one of the states with the highest road taxes, ranging from 13% to 20%. An official noted, "Currently, we are imposing 11% cess, including 10% infrastructure cess and 1% urban transport cess."