Karnataka Imposes Motor Vehicle Tax on Out-of-State Vehicles; Ordinance Issued
Government aims to boost revenue and curb environmental pollution

Bengaluru, April 30 (Haqeeqat Times):
The Government of Karnataka has taken a significant decision in view of the increasing number of vehicles registered in other states but operating within Karnataka, leading to rising environmental pollution. The state has promulgated the Karnataka Motor Vehicle Tax (Amendment) Ordinance, making it mandatory to levy tax on such vehicles that are registered outside the state but are being used in Karnataka on a long-term basis.

According to officials, a large number of vehicles from Delhi and other states are being used in Bengaluru and other cities, contributing to growing air pollution. To address this issue and to enhance state revenue, the government has introduced this measure.

Under the new regulation, cars, jeeps, minibuses, and two-wheelers registered outside Karnataka but continuously used within the state will now be required to pay motor vehicle tax.

The proposed tax structure is as follows:

• Vehicles priced between ₹10 lakh and ₹15 lakh: 15% tax
• Vehicles priced above ₹15 lakh: 18% tax
• Electric vehicles priced above ₹25 lakh: 10% tax
• Older vehicles will be taxed based on their age and condition

Additionally, the tax exemptions previously granted to electric vehicles have also been revised.

Government sources stated that thousands of out-of-state vehicles have been operating in Karnataka without contributing any tax revenue. It was also observed that many individuals were registering their vehicles in neighboring states to avoid paying taxes.

The government believes that this new initiative will not only increase tax revenue but also help regulate unnecessary vehicle usage, thereby contributing to the reduction of environmental pollution.

Source: Haqeeqat Times