Bangalore: The Karnataka government has decided to charge extra fees on vehicle registration. The state Assembly has approved the Karnataka Motor Vehicles Taxation (Second Amendment) Bill. The bill introduced by Law and Parliamentary Affairs Minister HK Patil aim to charge an additional cess of Rs 500 on private two-wheelers and Rs 1,000 on cars during registration.
The Karnataka Motor Vehicles Taxation (Second Amendment) Bill will see the additional funds directed to the Karnataka Motor Transport and Other Allied Workers Social Security and Welfare Fund, which benefits bus, cab, and auto-rickshaw drivers.
The new cess will be collected during the registration of non-transport vehicles. It will be added to the existing cess under the Motor Vehicles Act of 1988.
Karnataka already collects one of the highest motor vehicle taxes in India. The state currently imposes an 11 percent cess on taxes under the Motor Vehicles Act, with 10 percent of it used for infrastructure projects, investments in Bangalore’s Mass Rapid Transit System, and the Chief Minister’s Rural Road Development Fund. The remaining 1 percent is allocated to the Urban Transport Fund. Additionally, a 3 percent cess is charged on commercial vehicles (yellow board), which also goes into the same welfare fund for transport workers.