The Hindu : Karnataka / Bangalore News : Lifetime tax on private vehicles up by 2 p.c.

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Friday, Jul 18, 2008
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Karnataka

Karnataka - Bangalore

Lifetime tax on private vehicles up by 2 p.c.

Staff Reporter

The move is to discourage more private vehicles on roads
Tax on traffic revenue of State transport undertakings slashed

BANGALORE: Attempting to give a fresh impetus to public transport and discourage private modes of transport, Chief Minister B.S. Yeddyurappa on Thursday proposed to slash tax on traffic revenue of State transport undertakings (except BMTC) by two per cent and increase lifetime tax on private vehicles, except two-wheelers, by two per cent.

Presenting the budget for 2008-09 here, Mr. Yeddyurappa said LTT on private vehicles was being increased to discourage more private vehicles on roads as well as to net more revenue.

Accordingly, the LTT on cars, jeeps, omni buses, and private service vehicles whose floor area is up to five sq metres and the cost up to Rs. 5 lakh, between Rs. 5 lakh and Rs. 10 lakh and beyond Rs. 10 lakh had been increased 12, 13 and 16 per cent respectively.

Acting on the plea of Karnataka State Road Transport Corporation (KSRTC) and its sister corporations — North West (NW) and North East (NE) Karnataka Road Transport Corporations (KRTC), the Chief Minister proposed to reduce the tax rate from seven per cent to five per cent on the gross traffic revenue. BMTC’s existing tax component on traffic revenue is five per cent.

Meanwhile, all the four RTCs, including BMTC, will add 3,500 new buses to their existing fleet during the current fiscal at a cost of Rs. 549 crore. Mr. Yeddyurappa also announced financial support of Rs. 50 crore to NWKRTC to strengthen its services.

Concession

To cater to the long pending demand of senior citizens for concession in travel, Mr. Yeddyurappa announced that they would get 25 per cent concession while travelling on RTCs. At present, BMTC offers a 13 per cent discount only for monthly passes purchased by senior citizens.

Driver training centre

The Chief Minister announced centres to train drivers for heavy vehicles in four revenue divisions at a cost of Rs. 5 crore. Presently, KSRTC and BMTC are facing shortage of skilled drivers. Mr. Yeddyurappa also announced opening of truck terminals in Mysore, Hubli-Dharwad, Belgaum and Bellary through public-private partnership.

Rail projects

For ongoing railway projects under cost-sharing basis, Mr. Yeddyurappa allocated Rs. 253 crore for the current financial year. He said the State Government had taken up the issue of speedy completion of ongoing railway projects in the State, which include gauge conversion of Shimoga-Talaguppa and Solapur-Bagalkot-Gadag lines; new lines between Bidar-Gulbarga, Munirabad-Mehbubnagar and Kottur-Harihar and doubling of Bangalore- Mysore line.

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