<p>In a significant win for the taxpayers, the <a href="https://www.deccanherald.com/tags/mysuru-city-corporation">Mysuru City Corporation</a> (MCC) has decided to withdraw its controversial proposal to levy a ‘Motor Vehicle Infrastructure Cess’ besides property tax. The decision comes in the wake of an intense public backlash and widespread criticism that the tax was ‘unscientific’.</p><p>The proposal, under the <em>City Corporation Act 1976</em>, intended to collect a specific annual amount from vehicle owners to fund the development of city roads and traffic infrastructure. A public notice regarding the collection of the cess for the 2026-27 fiscal year had been issued on March 23.</p>.<p><strong>Withdrawal</strong></p><p>The proposal faced immediate and fierce resistance from citizens and civic groups. The primary point of contention was the ‘unscientific’ nature of the tax — specifically, the decision to bundle vehicle-related charges with <a href="https://www.deccanherald.com/tags/property-tax">property tax</a>. </p>.<p>Critics argued that property ownership does not necessarily correlate with the number or type of vehicles used, making the collection process illogical and a burden.</p>.Mysuru BJP slams ‘record-breaking’ taxes, opposes MCC’s new vehicle cess.<p><strong>Confirmation</strong></p><p>Taking note of the public pressure and the practical hurdles in implementation, the MCC officials conducted a review of the pros and cons. In a press statement, the MCC Commissioner has announced that the process of collecting the Motor Vehicle Infrastructure Cess has been officially dropped, in the interest of the general public and respecting their objections.</p><p>The MCC had initially planned to collect an annual cess of Rs 100 for two-wheelers, Rs 200 for three-wheelers and Rs 500 for four-wheelers.</p>
<p>In a significant win for the taxpayers, the <a href="https://www.deccanherald.com/tags/mysuru-city-corporation">Mysuru City Corporation</a> (MCC) has decided to withdraw its controversial proposal to levy a ‘Motor Vehicle Infrastructure Cess’ besides property tax. The decision comes in the wake of an intense public backlash and widespread criticism that the tax was ‘unscientific’.</p><p>The proposal, under the <em>City Corporation Act 1976</em>, intended to collect a specific annual amount from vehicle owners to fund the development of city roads and traffic infrastructure. A public notice regarding the collection of the cess for the 2026-27 fiscal year had been issued on March 23.</p>.<p><strong>Withdrawal</strong></p><p>The proposal faced immediate and fierce resistance from citizens and civic groups. The primary point of contention was the ‘unscientific’ nature of the tax — specifically, the decision to bundle vehicle-related charges with <a href="https://www.deccanherald.com/tags/property-tax">property tax</a>. </p>.<p>Critics argued that property ownership does not necessarily correlate with the number or type of vehicles used, making the collection process illogical and a burden.</p>.Mysuru BJP slams ‘record-breaking’ taxes, opposes MCC’s new vehicle cess.<p><strong>Confirmation</strong></p><p>Taking note of the public pressure and the practical hurdles in implementation, the MCC officials conducted a review of the pros and cons. In a press statement, the MCC Commissioner has announced that the process of collecting the Motor Vehicle Infrastructure Cess has been officially dropped, in the interest of the general public and respecting their objections.</p><p>The MCC had initially planned to collect an annual cess of Rs 100 for two-wheelers, Rs 200 for three-wheelers and Rs 500 for four-wheelers.</p>