Karnataka rolls back 20% tax proposal on electric vehicles

Karnataka Transport Minister Ramalinga Reddy had proposed a 20 per cent lifetime tax on new electric vehicles as part of the Karnataka Motor Vehicles Taxation (Second Amendment) Bill.

Belagavi: Karnataka Transport Minister Ramalinga Reddy on Wednesday rolled back a proposal to levy 20 per cent tax on electric vehicles costing above Rs 20 lakh following a nudge from lawmakers across parties, including the ruling Congress.

Reddy had proposed 20 per cent lifetime tax on new electric vehicles as part of the Karnataka Motor Vehicles Taxation (Second Amendment) Bill.

The Bill was passed by the Assembly after the minister agreed to drop the 20 per cent tax proposal.

The amended version of the Bill proposes 10 per cent tax on electric vehicles.

Under the Bill, Reddy said the government will not levy lifetime tax on yellow-board cars valued at Rs 10-15 lakh and goods vehicles with a capacity of 1,500-12,000 kg. "After we imposed lifetime tax, they requested the earlier quarterly payment. It'll reduce our revenue by Rs 350 crore. But new vehicles will be levied lifetime tax," he said.

Former industries minister RV Deshpande, former deputy chief minister Dr CN Ashwath Narayan and others urged Reddy not to levy the 20 per cent tax on electric vehicles as it could discourage vehicle buyers.

The Assembly passed seven other Bills on the trot, which included legislation to fight corruption in public recruitment exams.

The Karnataka Public Examination (Measures for Prevention of Corruption and Unfair Means in Recruitment) Bill proposes punishment up to 10 years imprisonment and Rs 10 crore apart from confiscation of property. Also, a designated court will be set up for the trial of offences.

Piloting the Bill, Home Minister G Parameshwara said penal provisions would act as a deterrent. He said this in response to BJP MLA S Suresh Kumar who found the Bill to be "more of a penal law than preventive". Kumar said the government must consider preventive measures to curb corruption during recruitment exams by using technology.

A Bill to remove Section 7d from the Karnataka Scheduled Castes sub-allocation and Tribal sub-allocation (Planning, Allocation and Utilization of Financial Resources) Act, which allowed 'deemed expenditure' of SC/ST funds, was passed.

The Assembly also passed the Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Bill, the Karnataka High Court (Amendment) Bill, the Karnataka Civil Courts (Amendment) Bill, the Shree Renuka Yellamma Kshetra Tourism Development Board Bill and the Hampi World Heritage Area Management Authority (Amendment) Bill.