Cars, motorcycles and other two-wheelers will be dearer in Karnataka from April 1 following the budget proposals for fiscal 2010-11. It proposes to increase the motor vehicle taxes by 1 per cent to 2 per cent across the board in the state.
Chief minister B S Yeddyurappa, who presented the budget in the legislature assembly on Friday, said, the new tax proposals would result in a revenue collection of Rs 2,200 crore during the next fiscal.
“With noticeable increase in the motor vehicle sales during the latter half of the fiscal (2009-10), resulting in a higher collection in motor vehicle taxes, the life time tax on various types of vehicles will be increased by 1 per cent to 2 per cent during the next fiscal (FY 2011),” Yeddyurappa said.
Life time tax on motorcycles and other two wheelers will be increased to 10 per cent from 8 per cent for vehicles priced below Rs 50,000 and to 12 per cent from 10 per cent for vehicles priced between Rs 50,000 and Rs 1,00,000.
Similarly, life time tax on motor cars and jeeps will be increased to 13 per cent from 12 per cent for vehicles priced less than Rs 5 lakh, to 14 per cent from 13 per cent on vehicles priced between Rs 5 lakh and Rs 10 lakh, and 17 per cent on vehicles selling between Rs 10 lakh and Rs 20 lakh, instead of 16 per cent this fiscal, Yeddyurappa, who also holds the finance portfolio, said.
On luxury cars with a selling price of above Rs 20 lakh, the life time tax will be 18 per cent instead of 16 per cent presently.
The budget also proposes to levy a lifetime tax of Rs 20,000 on new light goods vehicles of 3,000-5,500 kg instead of a quarterly tax of Rs 1,200. For such vehicles, already in use, the lifetime tax will be an average of Rs 12,000 on the basis of the year of its manufacture.
Yeddyurappa has also modified the quarterly taxes on omni buses with all-India permit to Rs 2,750 from Rs 2,500 and on stage carriages with special permit to Rs 1,000 from Rs 700.
Taxes on 1,000 kg construction vehicles like mobile cranes, tower wagon, tipper, fork lift, air compressor and generator carrying vehicles will be levied life time tax assessed at 10 per cent of the selling price of the vehicle weighing 1,000 kg instead of Rs 200 quarterly.
“Additional resources of Rs 249 crore is expected from the revised or modified motor vehicle taxes in fiscal 2010-11,” Yeddyurappa told the house.
