Now life-time tax worries truckers
After the speed governor issue that had upset the state’s tourism and transport fraternity, it is now the unresolved issue of life-time taxes at the rate of 15 per cent for luxury cabs that has created a turmoil.
Various maxi cab associations, along with other transporters, have joined the All India Motor Transport Congress (AIMTC) and have called an indefinite strike starting from May 31 midnight protesting the two directives of the state government. Though the State Transport authorities had planned to look into the issue and reduce the tax slab, there has been no further development.
The maxi cab and truckers associations will go ahead with the strike unless the life-time taxes are reduced and the speed governor order is withdrawn. It is also estimated that over 2,500 airport taxis will participate in the indefinite strike. In the beginning of April this year, State Transport Commissioner, Mr T. Sham Bhatt had assured that the directive of Life Time taxes would be reviewed in the June session of the Cabinet, which is next month. But there has been no progress on this front.
“As per the state government’s budget of 2012-13, taxes for maxi cabs were to be revised. Now a life time tax will be levied for motor cabs that cost more than Rs 10 lakh, at the rate of 15 per cent of the cost of the vehicle. This is not fair as the six other states that have this system have a low life time tax rate of 3 to 6 per cent. If the proposal cannot be rolled back, at least existing vehicles should be exempted from the life time tax. The tax for newly registered vehicles should be reduced from 15 per cent to 5 to 6 per cent as in the other states. The price of the motor cabs to fall under the tax bracket should be increased from Rs 10 lakh to Rs 25 lakh or else it will be a huge burden and will lead to depression in the tourism industry,” said Bangalore Tourist Taxi Owners Association General Secretary Mr K. Radhakrishna Holla.
Another issue concerning commercial vehicle owners is the implementation of speed governors. It has been argued by AIMTC that the speed governor device does not conform to EURO-IV vehicles. They have stated that manufacturers are withdrawing the engine warranty of the vehicles because of the speed governors. The vehicles normally do 100km/hr on 4th and 5th gears but when the speed governor is fixed to limited speed(65 km/ hr) then the engine may get damaged.
“The state government should consider revising the absurd rules being imposed on commercial vehicles. We are going to start agitating from May 31 midnight,” said AIMTC president, Mr G.R. Shanmugappa.
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