Bengaluru: Private transporters seek district-level cap on Shakti scheme, paid bus terminal near Race Course Road

Bengaluru: The Federation of Karnataka State Private Transport Associations on Monday submitted its pre-Budget wishlist to Chief Minister Siddaramaiah, seeking relief for a sector it described as “distressed” due to policy imbalances, rising taxation, unchecked aggregator operations, and lack of financial support.

Among its key demands were an immediate amendment to the law to ban bike taxis, restriction of the Shakti free bus travel scheme to district-level travel, reduction in road tax, and development of the Race Course Road area into a pay-and-use bus terminal to ease congestion at Majestic and Anand Rao Circle.

The federation claimed that high road tax has led to 9,348 vehicles being registered in neighbouring states, resulting in an estimated revenue loss of Rs 300–400 crore to Karnataka. It said sleeper buses pay around Rs 4,440 per seat per quarter and seater buses Rs 3,850, translating to an annual tax burden of Rs 5–6 lakh per vehicle. This, it argued, has pushed many operators to opt for out-of-state registration.

More than 3,000 non-AC 16- and 22-seater buses have reportedly been registered outside Karnataka due to high taxes, the federation added.

Other demands include strict enforcement of existing rules mandating aggregator companies to pay a 1.5% royalty to the government; setting up prepaid automated taxi and autorickshaw stands at bus stations, railway stations, metro stations and major commercial hubs; provision of low-interest loans and subsidies for purchasing new vehicles; and separate classification and financial support for school vans.

The association also sought extension of the operational life of CNG vehicles from 15 to 20 years with subsidies; amendment of Rule 153 to ensure older vehicles are taxed based on fitness certificates; subsidised housing for drivers in Bengaluru; inclusion of lung diseases under occupational welfare benefits; recognition of heart attacks during mandated rest periods as compensable accidents up to the age of 70; transfer of commercial vehicle cess collections into a dedicated welfare fund; and establishment of government-run driver training centres in every district to help reduce accidents.