MV tax exemption to be sought for state-run buses

Transport Minister Ramalinga Reddy has said that he will take up the matter of exempting state-run buses from payment of Motor Vehicle taxes.

Reddy told the media here that he will seek the exemption from payment of statutory tax till both the corporations (KSRTC and BMTC) reach break-even stage. “There could be a possibility of rolling back the recent hike in BMTC fare, if the government accepts the proposal,” he said.

Kumar Pushkar, BMTC director (I-T), who gave a presentation on the financial health of the corporation, said that they had paid Rs 97.41 crore as motor vehicle tax to the government in 2013-14. He said 42 pc of the revenue, last year, had been spent on staff salary and 35 pc on purchase of diesel.

The corporation has incurred losses to the tune of Rs 140 crore and has outstanding loans of Rs 640 crore. A sum of Rs 360 crore was spent to purchase BS-III buses last year, he added.