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Old 5th June 2016, 09:07   #1
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Default Karnataka proposes higher road tax for your second vehicle

Karnataka transport department is proposing to levy additional road tax (up to 50% more) on your second vehicle.

Source - Buying second vehicle ? Pay additional tax

Quote:
Transport department proposes to increase road tax to decongest city
If you already have a vehicle at home registered in your name and planning to buy a second one, then think twice. The state transport department has decided to increase the road tax for the second vehicle. It will apply to four wheelers, two wheelers and used vehicles too.
The department proposes amendments to the Karnataka Motor Vehicles Act and send it to the state government.
I think such a rule is already effective in Andhra Pradesh - thread on that topic here (Additional Personal Tax for 2nd Vehicle in Andhra Pradesh)
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Old 5th June 2016, 10:29   #2
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Default re: Karnataka proposes higher road tax for your second vehicle

Vehicle tax is the 3rd highest revenue earner for Karnataka after sales tax and excise.

There is a reason why govts. squeeze drivers. Sales and excise taxes are always litigated. Per the latest CAG report >50% of these taxes are still due because the assesses have gone to court.
So for every Re. 1/- from these 2 sources the govt. spends 70 paise on collection.

No car or bike owner has gone to court challenging vehicle and road taxes. Again from the CAG report, if 1 person is needed for vehicle tax collections, 4 are needed for sales tax and 5 for excise.

We can't even go on strike! Public will be happy. So it's time vehicle owners and smokers started their own political party.

The smoking wheel party

Agenda: Implement zero tax economy and build an underground highway network.
Motto: Don't grease palms, grease wheels.
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Old 5th June 2016, 10:54   #3
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Default re: Karnataka proposes higher road tax for your second vehicle

I guess if one can buy and register the second vehicle in spouse's name, then there will be no issues.The report doesn't mention this at all.

Last edited by GTO : 6th June 2016 at 11:54. Reason: Typo
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Old 5th June 2016, 10:57   #4
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Default re: Karnataka proposes higher road tax for your second vehicle

Why not dynamically priced congestion charges? Because then people will demand the roads be repaired.

Seems like if there's a way to increase revenue without any promise of work, responsibility or obligation, the Karnataka govt will do it.

Decent public transport is a basic necessity & it should be the duty of government to provide the same in an efficient manner.

Many of us may not be interested in politics, but the politicians seem to have a serious interest in us & our pockets. To the vicious extent that they don't mind making it unlivable for us, we aren't their vote bank afterall.
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Old 5th June 2016, 11:07   #5
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Default Re: Additional Personal Tax for 2nd Vehicle in Andhra Pradesh

The underlying philosophy behind some direct taxes and tariffs of short supply and "necessity" goods is "Capacity to pay". Meaning a rich man pays more for the same goods than a poor man, given the same quantity and quality.
For example:
  1. In electricity tariffs, you progressively pay more as you use more. These are called telescopic tariffs. This principle goes against the normal, established market dynamics, where buying in bulk is cheaper than retail.
  2. Taking the same electricity example, a commercial customer pays more per unit than a residential one.
  3. As far as taxation example is concerned, take the most hated of taxes: Income Tax. The slabs get higher as your income increases.

This philosophy of "Capacity to pay" is practised in most countries in the world.
The government needs money to fulfil it's budgetary goals. Increasing taxes, levies, cess, duties, across the board and equally for all, irrespective of economic status, may not be the right answer. An additional tax on people who have a second vehicle may not be unjustified. Singapore has a model for discouraging additional cars.
In one of the companies that i worked for, we tried to incentivise people to come by pooled cars, or public transport or better still bicycles. An extra 1% increment to be given for adhering to certain do's and don'ts. Wasn't successful though.

However, i take the point that our management practices ( for running the country) need quantum improvement and it is possible to run the country far better by plugging the leaks caused by corrupt practices.

Last edited by earthian : 5th June 2016 at 11:20. Reason: added the last sentence
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Old 5th June 2016, 11:29   #6
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Default re: Karnataka proposes higher road tax for your second vehicle

First build proper roads that don't break within the first year, then actually fastrack the building of the Metro line (look where Hyderabad metro is in comparison) and then think about increasing taxes. KA government makes me sick
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Old 5th June 2016, 15:03   #7
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Default re: Karnataka proposes higher road tax for your second vehicle

Quote:
Originally Posted by redcruiser View Post
I guess if one can buy and register the second vehicle in ones spouse's name then there will be no issues.The report doesn't mentions this at all.
I think this works based on the registration "address", which means, even if the vehicle is registered in your spouse's name, the address will remain same and liable for additional tax. But yes, we have a hundred ways of countering it.
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Old 5th June 2016, 16:16   #8
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Default re: Karnataka proposes higher road tax for your second vehicle

They only want the moolah. I have two cars one used by me and one by my wife. So I am a criminal in their view. I buy four cars, one in my name, one of my spouse, and two in the names of my servants, I am fine. What a mockery?

Typical babu idea, he /she get four 'sarkari' vehicles so is not bothered.
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Old 5th June 2016, 17:58   #9
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Default re: Karnataka proposes higher road tax for your second vehicle

Quote:
Originally Posted by redcruiser View Post
I guess if one can buy and register the second vehicle in ones spouse's name then there will be no issues.The report doesn't mentions this at all.
I second your thought. I was also thinking on similar lines. Instead of coming out with proposals so as to fill the state coffers, let the govt first widen the roads, lay proper roads, complete the Metro rail connectivity so that the IT corridors get connected, and finally move the upcoming IT companies out of Whitefield, Electronic City. The govt should realize that Whitefield and Electronic City alone are not Bangalore. Develop areas like Hessarghatta, Nelamangala, Tumkur to name a few places I know. This will reduce people and vehicle congestion to a great extent.

Last edited by ampere : 8th June 2016 at 09:22. Reason: Removed Political comments
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Old 5th June 2016, 20:04   #10
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Default re: Karnataka proposes higher road tax for your second vehicle

Mod Note: Please keep the discussion restricted to the technical aspects of the thread. Lets not bring in any other elements into the discussion

Last edited by ampere : 6th June 2016 at 09:17.
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Old 6th June 2016, 09:05   #11
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Default re: Karnataka proposes higher road tax for your second vehicle

Quote:
Originally Posted by redcruiser View Post
I guess if one can buy and register the second vehicle in ones spouse's name then there will be no issues.The report doesn't mentions this at all.
Exactly the same point-

1. What if the vehicle is registered in their spouse or children's name then would this rule apply or its by registered address only?
2. Also what happens for persons owning two vehicles already and if one comes in for re-registration?
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Old 6th June 2016, 09:33   #12
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Default re: Karnataka proposes higher road tax for your second vehicle

Read this - http://www.newindianexpress.com/citi...cle3467088.ece

As mentioned in the New Indian Express :

"IF you already have a vehicle at home registered in your name and planning to buy a second one, then think twice. The state transport department has decided to increase the road tax for the second vehicle. It will apply to four-wheelers, two-wheelers, and used vehicles too."

Its kind of confusing - Is the number of vehicles tied to the registered owner OR the home ?

Prem.
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Old 6th June 2016, 09:36   #13
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Default re: Karnataka proposes higher road tax for your second vehicle

Will this be applied retrospectively? I have a second car to be delivered within a week or two. I was planning to purchase that in my spouse's name (as I have one in mine). I doubt (rather hope), that this decision will not be implemented so soon
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Old 6th June 2016, 10:12   #14
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Default re: Karnataka proposes higher road tax for your second vehicle

Karnataka government runs on road tax. Since the 30 day LTT rule was busted by PIL and High court, now they are looking for new avenues to earn money.
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Old 6th June 2016, 10:42   #15
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Default re: Karnataka proposes higher road tax for your second vehicle

Quote:
Originally Posted by Samurai View Post
Karnataka government runs on road tax.
Exactly. Now that the immigrants in the Island Republic of Karnataka have been taxed for their occupation of the land, it is the turn of the natives as well to pay. Wonder if the government uses at least one rupee from this fund for the actual betterment of the state with long-term vision.

A few things I can think of, as someone who lived in Bangalore for a couple of years:
(1) Expediting the metro construction, and stretching to where the large IT parks are, and to the airport (or at least let Indian Railways extend their line to the airport).
(2) Cleaning up the water-bodies and re-planting at least a fraction of the green cover lost in the past 10 - 15 years.
(3) Not allowing mindless construction of IT parks, malls and apartment complexes without thinking of access, water, sewage etc. (This shouldn't cost any money actually. Someone has to do their job, that's all).
(4) Removing the thousands of ironically named 'speed breakers' in a city with crawling traffic.

The way it is going, Bangalore cannot take much more of 'development' for sure.
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