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Old 2nd December 2013, 11:45   #1
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Thumbs down New Tax Rule in Karnataka leaves Cab Drivers Fuming!

A new tax rule stating that out station vehicles have to pay an annual tax instead of weekly tax or for the number of days they plan to stay has led to flash strike by the cab drivers across the Karnataka/Tamil Nadu Border.

Cabs stop at border over new tax rule

This is really sad!!!

How can one predict how many times will a cab get hired for a trip to Karnataka. The annual tax is 20000/- compared to 620/- for a week. The weekly tax can be passed on to the hirer but what about the annual tax?

Another half baked rule affecting the general public.
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Old 2nd December 2013, 12:19   #2
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

When they say Karnataka, this rule applies the whole of Karnataka and not just Bangalore, so does that mean cabs that used to be hired for week end shopping spree's or outings from Goa to Belgaum will also have to pay this tax?

If so then this rule is utter rubbish and outrageous indeed.One can understand a one time entry tax just like Goa but a rule like this will not only affect the taxi operators but also small business like small time rest-houses,dhabas,restaurants on the road.

Why don't these guys actually think about all the consequences before formally announcing their so called rules?

I hope this rule counts only for the yellow plated traffic and hopefully will not affect us white plated folks in the near future
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Old 2nd December 2013, 12:44   #3
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

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Originally Posted by richie4u View Post
I hope this rule counts only for the yellow plated traffic and hopefully will not affect us white plated folks in the near future
This will not affect the private vehicle buyers.

White board folks already pay the lifetime tax upfront while buying the car (through the nose in KA if I might add!).

Yellow boards can pay it annually/monthly or weekly. Now on I guess they want to make it only annually.
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Old 2nd December 2013, 14:14   #4
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

Quote:
Originally Posted by speedmiester View Post
How can one predict how many times will a cab get hired for a trip to Karnataka. The annual tax is 20000/- compared to 620/- for a week. The weekly tax can be passed on to the hirer but what about the annual tax?
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Originally Posted by Dry Ice View Post
Yellow boards can pay it annually/monthly or weekly. Now on I guess they want to make it only annually.
Comparing the 620 per week and 20k annually, a cab driver needs to get a trip almost every alternate week to break even the annual fees of 20k. This would be a huge blow for them since they were effectively paying nothing till now - weekly permit would have been paid by the customer and they didn't have to worry about that.
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Old 2nd December 2013, 15:50   #5
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

This is really sad!

This will encourage people to hire private vehicles (unauthorized taxis) for interstate trips, if the tax implication carry forwarded to hirer, affecting taxi guys.
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Old 2nd December 2013, 20:12   #6
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

A retrograde step. Shows the desperate need of the State Govt to tax the hapless and extort for whatever reason.
Is the order applicable only to commercial vehicles? The news item (link) is not clear at all about the scope of application of the order, whether for commercial vehicles and private ones too.
Is it applicable to private vehicles too ?
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Old 3rd December 2013, 04:25   #7
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

How come the people are thinking like this? Instead of moving forward they are trying to move backwards. I strongly believe that tax should not be collected by states for other state vehicles that enter their state, it only causes delay and hassle for the commercial vehicles and prevents free movement. This tax is added to the product cost and at the end it's the consumers who pays the price for that tax.Only in India such rules exist without benefiting the people.

Last edited by Sudan_NFS : 3rd December 2013 at 04:26. Reason: add few words
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Old 3rd December 2013, 07:32   #8
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

Unfortunately, we talk about GST and simplification of consumption taxes in one breath and continue to impose short-sighted measures like this in the other. As a business, it is incredibly difficult to navigate the federal tax structure in India without having each state act in random!

Imagine a poor taxi company's plight based in Chennai/Hyderabad with a south India permit as it tries to navigate the arcane tax structure and pricing for plying among just TN, Kerala, all of erstwhile AP and Karnataka
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Old 3rd December 2013, 09:23   #9
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

I think this move is to favor local taxi's. People will now be forced to hire KA plates as no other taxis are willing to travel to KA.
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Old 3rd December 2013, 09:36   #10
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This so ridiculous , do they even put some thought on such things before planning to implement ? Already the LTT, fuel price etc in Karnataka are the highest in India. Too much restrictions and foolish rules will only make public to look for ways to overcome these illegally, finally resulting in loss for the exchequer and lawlessness.
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Old 3rd December 2013, 11:18   #11
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

Stupid move, but not sure whether they could do anything else. We have a federal setup, which allows states to decide what to tax and how to do that. I am not sure what they are trying to plug here, but I guess their target is Bangalore. Many car owners, not just taxis, prefer to register their cars in Hosur to cheat taxes. Then they ply in Bangalore. I know that taxes in Bangalore are exorbitant, but that is no good reason to avoid it.

But, why the move is stupid is that more rules means more hands needed to enforce, and that means more corruption. We need simple rules and a simplified tax system.

BTW, I'd be glad if this move would reduce the number of vehicles from Hosur plying in Bangalore. More often than not, it is them who are the worst offenders on Bangalore roads, unless you bring those "DVD, Bluray, Home Theater buses" to the picture.
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Old 3rd December 2013, 11:53   #12
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

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Originally Posted by govigov View Post
I think this move is to favor local taxi's. People will now be forced to hire KA plates as no other taxis are willing to travel to KA.
How does this again help? If someone wants to tour Karnataka from another state, they first book a cab from their state and then get down at the border and take a KA taxi?? It's plain atrocious!
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Old 3rd December 2013, 12:21   #13
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No ethics whatsoever! Taxing the poor to SUCH an extent is rather heartless & oppressive. Mindless policy framing.

I hope we move from taxing the car to taxing the fuel. Vehicles should be taxed almost NIL and the whole burden should be slowly moved to the Fuels. This would not only give a boost to the bleeding Auto-industry but also ensure the 'Running' of a vehicle is taxed, not its mere existence.

This would effectively decongest roads to a great extent and infact give more control to the government such that they can charge less/more tax based on time etc (Ex. charge less tax during weekdays). They can lay rules like cars not being allowed to carry extra fuel in excess of 5L and vehicle range should be kept @ 300km.

This method would ensure
1) Poor could travel on highways during weekdays.
2) Public transport would become more viable, hence greener & safer.

Edit : True, this could make our travel more expensive, but please consider how relieving it'd be for the less fortunate.

Last edited by GrammarNazi : 3rd December 2013 at 12:33.
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Old 3rd December 2013, 12:30   #14
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

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Originally Posted by blacksport View Post
BTW, I'd be glad if this move would reduce the number of vehicles from Hosur plying in Bangalore. More often than not, it is them who are the worst offenders on Bangalore roads, unless you bring those "DVD, Bluray, Home Theater buses" to the picture.
Off thread, but I totally disagree mate. What makes you think vehicles from Hosur are offenders?

Surely none of the BMTC buses which blatantly jump all rules (jump red lights, drive on the wrong side of the road to clear a signal, overtake from the wrong side, stop wherever the driver pleases) are from Hosur.

Neither are the autorickshaws / call centre cabs in Bangalore for whom rules / driving etiquette / signals / lanes and everything else that describes sanity are non existent.

Again, don't tell me that the bikes (with KA number plates) which are driven on the footpaths, on the wrong side of the road, without helmets, which carry 3+ people are from Hosur.

Finally, the Government vehicles with a green strip on the number plate with Kannada font for whom every driver that follows the rule is an idiot are also not from Hosur !

Would like to see some stats / facts from your side before you make such a ridiculous statement - sorry for being blunt but that is the most diplomatic I can get to describe your statement.

PS: I am not from Hosur
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Old 3rd December 2013, 12:50   #15
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Default Re: New Tax Rule in Karnataka leaves Cab Drivers Fuming!

Now, its Karnataka's turn!. Last year, TN govt made a killing by hiking the entry tax for buses (11 seater and above) from Rs. 50 to Rs. 600 per seat!

Looks more of a reciprocal move by KA..

http://www.thehindu.com/news/nationa...cle3332380.ece

http://articles.timesofindia.indiati...il-nadu-kerala
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