Life-time tax on bikes priced above Rs 1 lakh has been increased from 12% to 18%, a rise that comes after a gap of seven years. The government expects an additional Rs 60 crore revenue from the tax hike.
Chief Minister Siddaramaiah noted that the tax on two-wheelers has not been increased since 2010. However, he did not touch the tax on bikes and scooters priced below Rs 1 lakh.
Two-wheelers account for most of the private vehicles in Karnataka. There are nearly 1.23 crore two-wheelers in the state against 1.6 crore private vehicles, excluding transport vehicles. More than 11 lakh two-wheelers were added in 2016. Though most of the two-wheelers fall within the bracket of Rs 65,000-Rs 1 lakh, bikes that are sought after by youngsters usually cost a little above Rs 1 lakh.
Coming to imported bikes, the tax is applicable in accordance with total cost incurred in importing them or the value given in the ‘bill of entry’.
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