The proposal of lifetime taxes to be imposed on luxury taxis costing above Rs. 10 lakh has to be reconsidered by state government. Since the issue has been put on hold, owners of luxury taxis are unable to pay vehicle tax.
This is because the transport department has not come out with an alternative for paying vehicle tax. As a result, over 20, 000 state luxury vehicles cannot ply outside Karnataka since they have not paid vehicle tax to the transport department.
Modification in vehicle taxes for luxury cabs announced in this year’s budget created some panic. As per the new rule of state government, each taxi costing above Rs. 10 lakh would have to shell out 15 percent of the vehicle cost as vehicle tax, to be paid to the transport department, that is a tax of over 1 lakh.
When taxi operators threatened to strike against the move, state government stopped enforcement of the new rule and promised to re-look into the matter. It failed to address the issue, preoccupied as it is with political developments. No alternative has been devised by the state transport department to ensure that luxury vehicle operators pay vehicle taxes.
“Over 20,000 taxis have not renewed their insurance. The government had promised that lifetime taxes will be changed for vehicles valued at Rs 15 lakh. As of now, we don’t have any provision for paying vehicle tax.
A large number of vehicles are running without paying taxes which is a setback for us. The transport department need to come out with a solution,” said the general secretary of the Bangalore Tourist Taxi Operators Association, Radhakrishna Holla.