State to revisit motor act to augment revenue

To increase revenue collection from motor vehicle taxes, Chief Minister Siddaramaiah on Friday proposed to bring suitable amendments to the Motor Vehicle Taxation Act.

The chief minister, in the budget proposals, said it has been found that vehicles are being registered in other states where the rate of life time tax is low but are plying in the State to avoid payment of life time tax levied in Karnataka. To prevent revenue loss from this, the Act would be amended by placing the required bills in the current session of legislature, he said. 

Besides, the government will levy Rs 500 per seat per quarter for motor cabs which cost more than Rs 15 lakh and registered in states other than Karnataka by obtaining tourist vehicle permit instead of life time vehicle, he announced. 

The overall budget allocation for transport sector has come down by two per cent. While in 2013-14, total allocation of funds was 10 per cent of total budget, for financial year 2014-2015, this has been reduced to only eight per cent of overall allocation. This year, Rs 5,422 crore has been allocated to transport sector whereas revenue collection target has been fixed at Rs 4,350 crore.

Senior transport officials say that out of last year’s revenue collection target which was pegged at Rs 4,120 crore, already till January end, 95 per cent has been realised and there is one and half a month to achieve the remaining, However, due to dip in overall registration of vehicles in State, there may be shortfall in achieving the target set up for 2013-2014.

The budget proposes to increase reimbursements for bus passes for BMTC from Rs 90 crore in last financial year to Rs 150 crore in this financial year. However, BMTC had sought Rs 192 crore. Similarly, for KSRTC, the reimbursements  for bus passes have been increased from Rs 120 crore to Rs 188 crore whereas the corporation had sought Rs 244 crore.