Vehicle owners and those planning to buy can relax for sometime. For, Union Finance Minister P Chidambaram has not imposed any additional tax on motor vehicles. In the current fiscal, the government had enhanced taxes on various classes of vehicles to mobilise an additional revenue of Rs 75 crore.
The scheme of subsidised bus pass facility to students, freedom fighters and the disabled has been continued and an allocation of Rs 189 crores has been made for remimbursement to road transport corporations. It also has provided a capital outlay of Rs 100 crore for improvement of bus transport infrastructure in backward taluks. The budget has in all increased its allocation for home and transport from Rs 1945.74 crore in 2007-08 to Rs 2442.59 crore.

These have been welcomed by the transport department and KSRTC.

Principal Secretary (Finance), M R Sreenivasa Murthy said the ‘Vote on Account’ budget has no new tax proposals as far as the transport sector is concerned. “It is valid for six months. Additional taxes if proposed, meant more realisation of revenue for the departments concerned. The government felt it apt to continue with the present tax slabs for the transport sector” he added.

Welcoming the budget as a whole, D Thangaraj, Principal Secretary (Transport) said 2007-08 has been a good year for the transport department that has seen a 15 per cent growth. “I am yet to have full details of the budget. But I can say that we have exceeded our target of Rs 1,650 crore by way of  additional revenue after tax on various classes of vehicles was enhanced during the last budget. We hope to cross Rs 1,700 crore by March 31. Transport sector has witnessed a 10 per cent growth during the last year.” Thangaraj said.

Transport Commissioner N Lakshminarayana said the modernisation drive in the department will see growth continue this year too. “We are a revenue earning department. As we are laying emphasis on PPP,there will be no government expenditure. We will soon issue smart cards for vehicle registration and issuance of driving licence as part of the modernisation drive” he added.

KSRTC Managing Director A P Joshi said any allocation for improvement of infrastructure in districts/ taluks is welcome. “State transport undertakings, KSRTC, BMTC, NWKRTC and NEKRTC have been asking for a reduction of MV tax on buses. I am not sure whether we have got this. I have not yet seen the copy of the budget” Mr Joshi said.

HIGHLIGHTS

*Outlay of Rs 38 crore earmarked for expedition of B-Trac
*Capital outlay of Rs 100 crore for improvement of bus stations
*Rs 189 crore to reimbursement state RTC for subsidised passes
*Transport department exceeds target of Rs 1,650 crore through tax collection