Latest news with #KarnatakaStateTravelOperators'Association
The Hindu
11-05-2025
- Business
- The Hindu
Bengaluru cab operators hit hard as airport closures impact travel industry post-Pahalgam attack
: Passenger transport and cab industry in Bengaluru has taken a hit following the April 22 Pahalgam terror attack in Jammu and Kashmir and the subsequent Operation Sindoor, which has led to the temporary closure of 32 Indian airports until May 15. With air travel witnessing a sharp decline, cab drivers and operators in the city are feeling its ripple effects, particularly those who primarily serve airport-bound passengers and tourists. With both countries reaching an agreement to stop military operations on Saturday evening, the industry was hopeful of airports opening up again, but ceasefire violations by Pakistan on Saturday night has left the industry anxious. Speaking to The Hindu, Karnataka State Travel Operators' Association (KSTOA) president K. Radhakrishna Holla said the situation is now reminiscent of the COVID-19 lockdown days. 'Earlier, we were getting many passengers from the airport. Now, with most of the North Indian airports shut, passenger movement has dropped significantly, though the Bengaluru airport is operating normally. The demand for cabs, especially premium services, has come down drastically. Currently, we are mostly getting bookings from office employees and a few corporate clients. Tourist bookings are barely coming in these days,' he said. Mr. Holla added that while the security situation necessitates these measures, a prolonged disruption could have devastating economic consequences for the sector. 'It is fine that the business is dull now since it is a matter of national security. But if this continues for long, it will affect the transport business on a large scale. Adding to this is the diplomatic fallout after Pakistan receiving vocal support from Azerbaijan and Türkiye. Many Indian tour operators have cancelled packages to these countries. This will indirectly affect us as well, since airport traffic for international departures is likely to remain low. It's similar to the situation when tourists from India began cancelling trips to the Maldives after derogatory remarks were made by Maldivian Ministers about Prime Minister Narendra Modi's visit to Lakshadweep in early 2024,' he said. Airport cab drivers, many of whom rely solely on steady flight operations for their daily earnings, are particularly hard-hit. Prakash R., a cab driver who has worked the airport route for the past six years, said: 'I used to get at least four trips a day from the airport. Now, I get one. Sometimes I wait at the airport for six to eight hours, and return empty. The flight arrivals are very low, and most passengers now prefer to stay home or cancel their travel altogether. Our earnings have dropped by more than half.' Another driver, Mahadevappa K.N., who runs a premium SUV cab, said the luxury segment has been the worst affected. 'Business travellers and high-end tourists were our main customers. Now, there's nothing. Some drivers have switched to daily rentals for corporate employees, but that doesn't fetch the same income. We're still paying EMI for our vehicles, and fuel prices haven't come down. If this situation goes on beyond May 15,it will be difficult.'
The Hindu
10-05-2025
- Automotive
- The Hindu
New lifetime tax on commercial vehicles draws flak from small operators
The Karnataka government began enforcing the Karnataka Motor Vehicle Taxation (Amendment) Act on May 1, bringing significant changes to the way commercial vehicles are taxed in the State. Under the new rules, taxis priced less than ₹10 lakh now attract a lifetime tax of 5% of the vehicle's cost, payable in full at the time of registration. Until now, commercial taxis in this price segment were exempt from lifetime tax and instead paid a quarterly tax of ₹100 per seat for a four-seater vehicle — amounting to roughly ₹1,800 annually, including cess. The updated policy replaces this quarterly system with a one-time payment, which many operators say will hit small business owners the hardest. 'This change will impact micro-level operators much more than large fleet owners,' said K. Radhakrishna Holla, president of the Karnataka State Travel Operators' Association. 'For a vehicle costing ₹10 lakh, the lifetime tax now amounts to around ₹50,000 upfront. Most commercial vehicles fall under this category, so it's going to be a major setback for small operators.' The revised tax slabs go further for vehicles in higher price brackets. Buyers of commercial vehicles priced between ₹10 lakh and ₹15 lakh must now pay 9% of the vehicle's cost as lifetime tax, while those purchasing vehicles above ₹15 lakh will be taxed at 15%. Even electric vehicles, which were previously exempt if they cost more than ₹25 lakh, will now attract a 10% tax under the new structure. Mr. Holla criticised the move to include electric vehicles in the tax net, saying: 'Karnataka already lags behind in EV adoption. Imposing new taxes on commercial e-vehicles at this stage will discourage drivers from switching to cleaner alternatives.' Ravi S., a cab driver who owns a single vehicle, expressed his frustration: 'I've been planning to replace my old car this year, but the new rule means I need to pay ₹50,000 extra right away. For drivers like me, that's just not affordable. It's like the government wants to make it harder for small players to survive.'
New Indian Express
30-04-2025
- Automotive
- New Indian Express
Registration fee for commercial vehicles to go up in Karnataka
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.
