Final Up to date: March 08, 2024, 10:30 IST
Karnataka Hikes Automobile Registration Charges, Electrical Automobiles Face Lifetime Tax.
Karnataka’s new tax regulation will increase car registration charges, introduces lifetime tax for electrical vehicles, and goals to offer social safety for employees.
The Karnataka authorities has given the inexperienced gentle to a brand new regulation that may make registering automobiles within the state costlier.
Governor Thaawarchand Gehlot accepted the Karnataka Motor Automobile Taxation (Modification) Act, 2024, on March 6. The regulation was formally printed within the gazette on March 7, as reported by Cash Management.
Karnataka Motor Automobile Taxation (Modification) Act, 2024: What Does It Says?
Beneath this new regulation, a 3 p.c additional price will probably be charged on transport automobiles. This cash will go into the Karnataka Motor Transport and Different Allied Employees Social Safety and Welfare Fund.
Moreover, the federal government now has the ability to impose a lifetime tax on electrical automobiles (EVs). If an electrical automobile, jeep, omnibus, or personal service car prices greater than Rs 25 lakh, a ten p.c tax will probably be levied on its value on the time of registration. That is the primary time such a tax is being imposed on electrical automobiles within the state.
Affect On Costs
Presently, Karnataka already has a number of the highest street taxes within the nation, starting from 13 p.c to twenty p.c. The brand new 3 p.c tax on transport automobiles will make proudly owning a car much more costly.
The Karnataka Motor Transport and Different Allied Employees’ Social Safety and Welfare Act, 2024, was additionally accepted by Governor Gehlot on March 6. This regulation goals to offer social safety and welfare measures for employees within the transportation sector.
Who Does It Apply To?
The regulation applies to employees in motor transport firms, garages, workshops, and comparable institutions acknowledged by the state authorities. It defines employees as these employed in transportation, excluding sure teams like authorities workers and people in managerial positions.
Advantages Of The New Regulation For Employees
The state authorities will set up a board referred to as the ‘Karnataka State Motor Transport and Different Allied Employees’ Social Safety and Welfare Board’ to supervise these measures. This board could have members together with the Labour Minister and senior officers from the Division of Labour.
Advantages for Motor Transport and Different Allied Employees (MTOAW) embrace accident advantages, instructional support for youngsters, maternity advantages, pension schemes, and extra.
BH-Sequence Registration
In a associated growth, the Karnataka Excessive Court docket not too long ago upheld a call to permit workers of personal firms working in a number of states to register their automobiles underneath the Bharat (BH) sequence. Nevertheless, the transport division is hesitant to advertise BH sequence registration for personal sector workers, fearing a lack of income.
Launched in August 2021 by the Union Ministry of Highway Transport and Highways, the ‘BH-series’ registration eases car registration for people relocating between states.
Whereas made accessible to varied authorities workers, the transport division fears the potential income affect if prolonged to personal sector workers, estimating a lack of 5-7 p.c of Motor Automobile tax per car based mostly on its class or worth.
