Higher tax on two-wheelers to bring in Rs. 9 cr. more

BANGALORE, MARCH 11. In a scenario where the automotive sector, particularly the two-wheeler high-end segment is witnessing increasing sales, the Deputy Chief Minister, Siddaramaiah, has, in his budget proposals, enhanced by two per cent (from seven per cent to nine per cent) the lifetime motor vehicle tax on two-wheelers which cost over Rs. 50,000.

The enhanced tax proposals are expected to yield an additional revenue of Rs. 9 crores.

Mr. Siddaramaiah has proposed to increase the tax on multi-axle, articulated goods vehicles and lifetime tax on two-wheelers.The proposed lifetime tax for old vehicles is now based on percentages, unlike in the existing system where flat rates existed. The older the vehicle, the lower the tax percentage.

Mr. Siddaramaiah said that to encourage tourism he proposed to introduce separate clause of tax for air-conditioned integral/monocoque buses covered by all-India tourist permits.

Announcing that Smart Card-based driving licences, registration certificates and high-security registration number plates will be introduced, Mr. Siddaramaiah said the process of computerisation of regional transport offices will be completed during the financial year. The Smart Card programme will be taken up with private participation and the funds required generated by levying user charges.