Karnataka Car prices to go up due to increase in VAT

bimi · 5th March 2010, 16:41

Karnataka Budget news:

Increase in Value Added Tax:
Value Added Tax rates, will be increased from 12.5 per cent to 13.5 per cent and from 4 per cent to 5 per cent with effect from 1.4.2010
Life time tax on motor cars and jeeps will be modified as follows
1. Vehicles with selling price less than Rs.5,00,000: from 12 per cent to 13 per cent
2. Vehicles with selling price from Rs.5,00,000 to Rs.10,00,000: from 13 per cent to 14 per cent
3. Vehicles with selling price from Rs.10,00,000 to Rs.20,00,000: from 16 per cent to 17 per cent
4. Vehicles with selling price more than Rs.20,00,000: from 16 per cent to 18 per cent

shishir_bn · 5th March 2010, 16:45

OMG. First the registration or the road tax itself is so high and now add to this the VAT. So no time to hide for buyers and sellers.

prashanthyr · 5th March 2010, 16:46

Crazy. When taxes are being rationalized across the country, Karnataka goes the other way.

We always had the highest selling price for cars and fuel - now the gap is getting wider! first in at least one area!

arunkumars · 5th March 2010, 17:02

As if the TAX and VAT weren't the highest in INDIA we have an increase on the same now

.

What next????????
Start charging VAT on fuel at fuel stations as well

cuboid · 5th March 2010, 17:35

daylight robbery!!! how much more would they increase the vat/tax? soon we would spend 100% of car value on taxes to state in Karnataka, and suddenly importing a car would not seem so costly. what a day it would be!

naveenvenkatesh · 5th March 2010, 18:03

Oh man. This is ridiculous. Karnataka has one of the worst road network but still the highest road tax. Now to add to that higher VAT as if the excise duty increase was not enough.
Petrol is also dearer by 2-3 rupees. I guess the good times are behind us!

theMAG · 5th March 2010, 18:04

This is sheer robbery. Karnataka is the country's highest taxed state to begin with.

Prithvi · 5th March 2010, 18:10

This country is never going to ever improve. Instead of being one country we are being individual states with different tax structures and all this money is going to these politicians pockets. The comman man has to suffer. Even the Fuel prices are the highest in the country.

Karnataka is the highest in everything. Sheer madness.

MERA BHARATH MAHN!

vinaydas · 5th March 2010, 18:22

Haha all i can do is laugh!!
the government here is a joke.
i still remember just before the recession.
fuel prices had reached close to 58 bucks. Our so called leader promised he would reduce taxes to consolidate the fuel price.
what did he do?
Nothing But attending a few weddings and taking family pictures.

Highest tax in india for vehicles , Most expensively priced fuel ,poor state of the roads.
expect more and more outside state vehicles being purchased.

I believe the governments lack of administrative skills for managing the state's economy is substituted by increasing tax.

No wonder people are moving away to different states from Karnataka .

For some reason i started Loving my Sig Even more

sabynag · 5th March 2010, 18:57

I don't blame Karnataka govt much. It is the result of price insensitivity of Bangaloreans in general. Think about it - who is not looting a Bangalorean ? Go to retaurant, any resort in Karnataka, multiplexes, high end shopping, try to buy properties, try to hire a cab - everywhere you will find overpricing with no negative impact on demand. People are ready to spend - price no bar. KA govt is just cashing in on this opportunity to raise fund for itself. Had we shown our sensitivity to prices, it would have been a completely different story overall.

We should be thankful to KA govt that we still have one-tax regime for the entire state. I will not be surprised if a time comes when Bangalore will be taxed differently than the rest of the state.

A350XWB · 5th March 2010, 19:07

sabynag, I totally agree with your comment. It's been 8 years since I'm in Bangalore and I can see this trend.
But come on Govt, atleast give us better roads to drive on. Taxes are sky high and infrastructure is too bad!

sbraj · 5th March 2010, 19:08

VAT on Fortuner is approx. 3 Lakhs? Unbelievable!!!

Quote:

Originally Posted by sabynag

I don't blame Karnataka govt much. It is the result of price insensitivity of Bangaloreans in general.

But the tax is for the entire state, not specifically for Bangalore alone.

If this is reason, then over a period of time, there would be skewed social structure. Only the rich will be able to afford luxuries. This will lead to social imbalances.

Has these higher tax rates got anything to do with Karnataka repeatedly being governed by the opposition party at Centre? During Vajpayee time, KA was under Congress. Now Congress is at Centre and KA has BJP led govt.

Just wondering whether KA is getting its share of centre budget allocations? The income tax being collected by Centre, is it finding its way back to Bangalore?

sandygordon · 5th March 2010, 19:20

Bangalore is one of the most heavily taxed cities in INDIA
The Bangalorian Cash Insensitivity Syndrome..

KARNATAKA S SIMILARLY TAXED
Dont know yy ?
May be the capital is Bangalore

sabynag · 5th March 2010, 19:42

Reduce the temptation to consume. Say a firm NO to overpricing. All prices, including taxes will come down.

Remember one economic theory : High tax brings ZERO revenue if it results in NO SALE

srishiva · 5th March 2010, 19:49

How many people will be affected by raise in car prices?

What percentage of central taxes paid by Karnataka comes back to the state? I dont think its a big issue if car prices go up.

5th March 2010, 16:41	#1
bimi BHPian Join Date: Mar 2007 Location: Chennai Posts: 89 Thanked: 11 Times	Karnataka Car prices to go up due to increase in VAT Karnataka Budget news: Increase in Value Added Tax: Value Added Tax rates, will be increased from 12.5 per cent to 13.5 per cent and from 4 per cent to 5 per cent with effect from 1.4.2010 Life time tax on motor cars and jeeps will be modified as follows 1. Vehicles with selling price less than Rs.5,00,000: from 12 per cent to 13 per cent 2. Vehicles with selling price from Rs.5,00,000 to Rs.10,00,000: from 13 per cent to 14 per cent 3. Vehicles with selling price from Rs.10,00,000 to Rs.20,00,000: from 16 per cent to 17 per cent 4. Vehicles with selling price more than Rs.20,00,000: from 16 per cent to 18 per cent Last edited by bimi : 5th March 2010 at 16:43.
	() Thanks

5th March 2010, 16:45	#2
shishir_bn Senior - BHPian Join Date: Nov 2009 Location: Bangalore Posts: 1,195 Thanked: 120 Times	OMG. First the registration or the road tax itself is so high and now add to this the VAT. So no time to hide for buyers and sellers.
	() Thanks

5th March 2010, 16:46	#3
prashanthyr BHPian Join Date: Jun 2007 Location: London Posts: 546 Thanked: 249 Times	Crazy. When taxes are being rationalized across the country, Karnataka goes the other way. We always had the highest selling price for cars and fuel - now the gap is getting wider! first in at least one area!
	() Thanks

5th March 2010, 17:02	#4
arunkumars BHPian Join Date: Dec 2009 Location: INDIA Posts: 55 Thanked: 7 Times	As if the TAX and VAT weren't the highest in INDIA we have an increase on the same now . What next???????? Start charging VAT on fuel at fuel stations as well
	() Thanks

5th March 2010, 17:35	#5
cuboid BHPian Join Date: Feb 2010 Location: Bangalore Posts: 210 Thanked: 217 Times	daylight robbery!!! how much more would they increase the vat/tax? soon we would spend 100% of car value on taxes to state in Karnataka, and suddenly importing a car would not seem so costly. what a day it would be!
	() Thanks

5th March 2010, 18:03	#6
naveenvenkatesh BHPian Join Date: Aug 2009 Location: US/India Posts: 344 Thanked: 151 Times	Oh man. This is ridiculous. Karnataka has one of the worst road network but still the highest road tax. Now to add to that higher VAT as if the excise duty increase was not enough. Petrol is also dearer by 2-3 rupees. I guess the good times are behind us!
	() Thanks

5th March 2010, 18:04	#7
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	This is sheer robbery. Karnataka is the country's highest taxed state to begin with.
	() Thanks

5th March 2010, 18:10	#8
Prithvi BHPian Join Date: May 2005 Location: BANGALORE Posts: 302 Thanked: 25 Times	This country is never going to ever improve. Instead of being one country we are being individual states with different tax structures and all this money is going to these politicians pockets. The comman man has to suffer. Even the Fuel prices are the highest in the country. Karnataka is the highest in everything. Sheer madness. MERA BHARATH MAHN!
	() Thanks

5th March 2010, 18:22	#9
vinaydas Senior - BHPian Join Date: Apr 2007 Location: Bengaluru Posts: 1,399 Thanked: 148 Times	Haha all i can do is laugh!! the government here is a joke. i still remember just before the recession. fuel prices had reached close to 58 bucks. Our so called leader promised he would reduce taxes to consolidate the fuel price. what did he do? Nothing But attending a few weddings and taking family pictures. Highest tax in india for vehicles , Most expensively priced fuel ,poor state of the roads. expect more and more outside state vehicles being purchased. I believe the governments lack of administrative skills for managing the state's economy is substituted by increasing tax. No wonder people are moving away to different states from Karnataka . For some reason i started Loving my Sig Even more Last edited by vinaydas : 5th March 2010 at 18:25.
	() Thanks

5th March 2010, 18:57	#10
sabynag BHPian Join Date: Aug 2009 Location: Bangalore Posts: 218 Thanked: 2 Times	I don't blame Karnataka govt much. It is the result of price insensitivity of Bangaloreans in general. Think about it - who is not looting a Bangalorean ? Go to retaurant, any resort in Karnataka, multiplexes, high end shopping, try to buy properties, try to hire a cab - everywhere you will find overpricing with no negative impact on demand. People are ready to spend - price no bar. KA govt is just cashing in on this opportunity to raise fund for itself. Had we shown our sensitivity to prices, it would have been a completely different story overall. We should be thankful to KA govt that we still have one-tax regime for the entire state. I will not be surprised if a time comes when Bangalore will be taxed differently than the rest of the state.
	() Thanks

5th March 2010, 19:07	#11
A350XWB BHPian Join Date: Oct 2009 Location: KA51/KL03 Posts: 923 Thanked: 861 Times	sabynag, I totally agree with your comment. It's been 8 years since I'm in Bangalore and I can see this trend. But come on Govt, atleast give us better roads to drive on. Taxes are sky high and infrastructure is too bad!
	() Thanks

5th March 2010, 19:20	#13
sandygordon BHPian Join Date: Jul 2009 Location: Cochin Posts: 681 Thanked: 1,939 Times View My Garage	Bangalore is one of the most heavily taxed cities in INDIA The Bangalorian Cash Insensitivity Syndrome.. KARNATAKA S SIMILARLY TAXED Dont know yy ? May be the capital is Bangalore
	() Thanks

5th March 2010, 19:42	#14
sabynag BHPian Join Date: Aug 2009 Location: Bangalore Posts: 218 Thanked: 2 Times	Reduce the temptation to consume. Say a firm NO to overpricing. All prices, including taxes will come down. Remember one economic theory : High tax brings ZERO revenue if it results in NO SALE
	() Thanks

5th March 2010, 19:49	#15
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	How many people will be affected by raise in car prices? What percentage of central taxes paid by Karnataka comes back to the state? I dont think its a big issue if car prices go up.
	() Thanks

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