Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles

sizz28 · 25th July 2023, 09:47

I got a call my SA at Trident Hyundai Bangalore last night informing that wef 1st Aug the KA govt will be increasing the road tax rate by 4-5%. He said that any registration that happens on or after 1st Aug will require to pay the increased rate. Did anyone else got any info on this?

CarguyNish · 25th July 2023, 10:04

Quote:

Originally Posted by sizz28

I got a call my SA at Trident Hyundai Bangalore last night informing that wef 1st Aug the KA govt will be increasing the road tax rate by 4-5%. He said that any registration that happens on or after 1st Aug will require to pay the increased rate. Did anyone else got any info on this?

AFAIK, it's applicable only for Commercial Vehicles. Non Transport Vehicles tax is the same. Already KA has highest tax among all states in India. There is no point in increasing it further just because of the greedy nature the leaders. Period.

dass · 25th July 2023, 11:16

Quote:

Originally Posted by CarguyNish

AFAIK, it's applicable only for Commercial Vehicles. Non Transport Vehicles tax is the same. Already KA has highest tax among all states in India. There is no point in increasing it further just because of the greedy nature the leaders. Period.

Slightly political, however for them to fund the promised freebies, they need to increase revenue and this is an easy way of doing it. The electricity, water, milk, alcohol rates have all been already increased, so I would not be surprised if this is next.

shantanumishra · 25th July 2023, 19:17

Quote:

Originally Posted by sizz28

I got a call my SA at Trident Hyundai Bangalore last night informing that wef 1st Aug the KA govt will be increasing the road tax rate by 4-5%. He said that any registration that happens on or after 1st Aug will require to pay the increased rate. Did anyone else got any info on this?

This is expected, the new govt. needs money to fund their freebies as well as collect funds for the upcoming LS elections due next year, their options are limited and with nearly all nearby states increasing their road taxes to match KA's, upwards is the only trend expected.

There was also an announcement during the recent state budget sessions on road tax rationalization, though I doubt the increase would be this high.

Lets see

OrangeCar · 25th July 2023, 19:32

With GST, state governments have limited levers to raise additional revenues. Road tax on vehicles, alcohol, fuel are some available options. And obviously state governments will milk them to the maximum.

With GST, there tax rates (which is also astronomically high, separate discussion!) are fixed and cannot be changed by individual states. As far as I know.

sizz28 · 25th July 2023, 22:08

Wasn't there a proposal (or maybe even a law) for uniform road tax across India? When is that going to get rolled out to all customers?

outdoorlover · 25th July 2023, 23:23

Quote:

Originally Posted by sizz28

Wasn't there a proposal (or maybe even a law) for uniform road tax across India? When is that going to get rolled out to all customers?

While this had been proposed on a central level some year back now, it has met serious pushback from states like Maharashtra, Karnataka and Kerala which have the highest rates of road tax that these states are not willing to let go. I doubt that the uniformity would ever see the light of the day.

Samurai · 26th July 2023, 17:05

https://www.newindianexpress.com/sta...a-2592554.html

It is only for commercial vehicles.

wheelguy · 26th July 2023, 17:25

Quote:

Originally Posted by outdoorlover

While this had been proposed on a central level some year back now, it has met serious pushback from states like Maharashtra, Karnataka and Kerala which have the highest rates of road tax that these states are not willing to let go. I doubt that the uniformity would ever see the light of the day.

Achieving a uniform road tax system need not be a pipe dream; there is indeed a way to do it without facing pushback from other states. The approach is to increase the road tax rates of other states to align with the rates of the high-rate states. The problem is solved

PreludeSH · 26th July 2023, 17:57

If all items come under GST, how will states that get low percentage as central grants mobilize money ?

Developed states get 10 to 15 paisa for every rupee they send to centre. So they will milk what they can.

Timeline 1967 · 26th July 2023, 18:44

The RTO officials as usual complicate the matters when it has been clearly mentioned in the Budget speech of the Hon'ble CM that it was only for commercial Vehicles.

srini1785 · 27th July 2023, 08:58

Having made some totally balk worthy promises in the run up to the elections and under pressure to walk the talk, its no surprise that everything is going up in KA. Milk is going to be dearer by 3.00, Veg prices are hitting the roof, commercial tariff of electricity increased by almost 20%. Increase in RTO tax is one way generate that moolah to plug the budget deficit. It's a pity that citizens have to pay more tax for non existent roads.

Rob peter to pay Paul.

Note to mods: Delete this post if it sounds too political.

25th July 2023, 09:47	#1
sizz28 BHPian Join Date: Jul 2023 Location: Bangalore Posts: 36 Thanked: 23 Times	Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles I got a call my SA at Trident Hyundai Bangalore last night informing that wef 1st Aug the KA govt will be increasing the road tax rate by 4-5%. He said that any registration that happens on or after 1st Aug will require to pay the increased rate. Did anyone else got any info on this?
	(3) Thanks

25th July 2023, 19:32	#5
OrangeCar BHPian Join Date: Oct 2016 Location: Bengaluru Posts: 258 Thanked: 1,374 Times	re: Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles With GST, state governments have limited levers to raise additional revenues. Road tax on vehicles, alcohol, fuel are some available options. And obviously state governments will milk them to the maximum. With GST, there tax rates (which is also astronomically high, separate discussion!) are fixed and cannot be changed by individual states. As far as I know.
	(1) Thanks

25th July 2023, 22:08	#6
sizz28 BHPian Join Date: Jul 2023 Location: Bangalore Posts: 36 Thanked: 23 Times	re: Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles Wasn't there a proposal (or maybe even a law) for uniform road tax across India? When is that going to get rolled out to all customers?
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26th July 2023, 17:05	#8
Samurai Team-BHP Support Join Date: Jan 2005 Location: Bangalore/Udupi Posts: 25,971 Thanked: 47,652 Times View My Garage	re: Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles https://www.newindianexpress.com/sta...a-2592554.html It is only for commercial vehicles.
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26th July 2023, 17:57	#10
PreludeSH BHPian Join Date: Oct 2021 Location: Bengaluru Posts: 800 Thanked: 1,756 Times	re: Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles If all items come under GST, how will states that get low percentage as central grants mobilize money ? Developed states get 10 to 15 paisa for every rupee they send to centre. So they will milk what they can.
	() Thanks

26th July 2023, 18:44	#11
Timeline 1967 BHPian Join Date: Sep 2022 Location: ---- Posts: 64 Thanked: 63 Times	re: Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles The RTO officials as usual complicate the matters when it has been clearly mentioned in the Budget speech of the Hon'ble CM that it was only for commercial Vehicles.
	() Thanks

27th July 2023, 08:58	#12
srini1785 BHPian Join Date: Dec 2005 Location: bang Posts: 891 Thanked: 3,215 Times	re: Karnataka increasing road tax by 4-5% from August 2023? EDIT: Appears to be for commercial vehicles Having made some totally balk worthy promises in the run up to the elections and under pressure to walk the talk, its no surprise that everything is going up in KA. Milk is going to be dearer by 3.00, Veg prices are hitting the roof, commercial tariff of electricity increased by almost 20%. Increase in RTO tax is one way generate that moolah to plug the budget deficit. It's a pity that citizens have to pay more tax for non existent roads. Rob peter to pay Paul. Note to mods: Delete this post if it sounds too political.
	(3) Thanks