Registration fee for commercial vehicles to go up in Karnataka

New Indian Express

30-04-2025

BENGALURU: Registration fee for commercial vehicles priced within Rs 10 lakh and for those used in the construction sector will go up from May 1.
The state government is implementing the Karnataka Motor Vehicle Taxation (Amendment) Act on May 1, despite opposition from commercial vehicle operators. The lifetime tax for cabs that cost less than Rs 10 lakh will be 5% of the cost of the vehicle.
Till now, lifetime taxes were not imposed on commercial vehicles (taxis) that cost less than Rs 10 lakh at one go, but were instead collected quarterly at the rate of Rs 100 per seat for a four-seater vehicle.
Rs 50 K tax on vehicles priced below Rs 10 L
'So every commercial vehicle priced within Rs 10 lakh annually paid tax of around Rs 1,800, including the cess. But now, the slabs have been revised and we have to pay lifetime tax at one go,' said K Radhakrishna Holla, president, Karnataka State Travel Operators' Association.
He said those buying vehicles priced within Rs 10 lakh, which include most commercial vehicles, will have to shell out around Rs 50,000 as lifetime tax at one go at the time of registration. As per the updated slabs, those buying vehicles priced within Rs 10-15 lakh have to pay 9% of the vehicle cost as lifetime tax.
Those buying vehicles priced at Rs 15 lakh and above will have to pay 15% for the vehicle cost. EVs priced above Rs 25 lakh were exempted from road tax. But now, those buying such vehicles have to pay 10% of the vehicle cost. Holla said Karnataka still lags behind in the adoption of electric vehicles. At this juncture, the government should not be levying taxes on e-vehicles. It will discourage people from operating commercial e-cars.
The lifetime tax for vehicles used in the construction sector and for those having air compressors and generators will be 8% of the cost of the vehicle. The state government's revenue collection target for the Transport Department for 2025-26 is Rs 15,000 crore.