Tourist vehicle operators from outside the State were shocked recently when Karnataka Transport Department authorities demanded payment of road tax for a year instead of special permit tax valid for a week to enter the State.
Many tourist vehicles entering Karnataka from Tamil Nadu had to face this situation near Attibele on the Karnataka–Tamil Nadu border, said K. Radhakrishna Holla, general secretary of Bangalore Tourist Taxi Owners Association (BTTOA). He said his counterpart from Chennai informed him about the inconvenience caused to taxi operators from Tamil Nadu who were asked to pay tax ranging from Rs. 15,000 to Rs. 20,000.
Mr. Holla said that in Andhra Pradesh, the annual tax for tourist vehicles with all-India permit was Rs. 3,200, and added that there was no such tax in Tamil Nadu and Kerala.
He said the Transport Department’s move would severely affect tourism in Karnataka as tourist vehicle operators would hesitate to bring vehicles to the State. Also, tourist vehicle operators from Karnataka would be in a disadvantageous position if the neighbouring States toointroduce annual tax for tourist vehicles, he said.
Whenever Karnataka increased road tax rates, the neighbouring States had followed suit , Mr. Holla said, and added that the move would particularly affect operators of small vehicles — taxis, maxi cabs and mini-buses.
Decision justifiedKarnataka Transport Department authorities, however, justified the decision to collect annual tax for all-India permit tourist vehicles and said that this was being enforced from six months. A senior official said the rule applies to only those vehicles that have taken ‘authorisation’ to ply in Karnataka for a year. By obtaining ‘authorisation’, the operator intends to operate in Karnataka for a long period and hence the annual tax was being collected. The operator thus can enter and exit Karnataka any number of times without any restriction throughout the year, the official said. Those who have not taken the authorisation can still enter Karnataka by obtaining a ‘special permit’ valid for seven days which costs Rs. 10 a seat for taxis; Rs. 75 a seat for maxi cabs and Rs. 600 a seat for tourist buses, the official said.
Collection of annual tax, as provided under Rules 83 and 84 of the Central Motor Vehicle Rules, for all-India permit vehicles was upheld by the Karnataka High Court, the official said. The decision to collect annual tax, according to the officer, would curb illegal operations by all-India tourist bus operators registered in other States who used to evade payment of quarterly tax.
