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The Hindu
07-07-2025
- Automotive
- The Hindu
Karnataka commercial vehicle operators demand inclusion in FASTag annual toll scheme
A newly announced toll concession for private vehicle users has sparked discontent among commercial transport operators in Karnataka, who argue that they too deserve similar benefits given their heavy use of national highways. The Ministry of Road Transport and Highways (MoRTH) recently unveiled an annual FASTag pass scheme for non-commercial vehicles at a fixed cost of ₹3,000, aiming to streamline toll payments and promote digital transactions. The scheme, set to take effect on August 15, 2025, promises significant savings for private motorists but has left the commercial vehicle sector feeling sidelined. While transport unions representing commercial vehicle operators such as cabs, taxis, buses, trucks, goods carriers, and maxi cabs have raised strong objections to their exclusion. These operators argue that they traverse highways far more frequently and incur far higher toll expenses annually, making them deserving of concessional toll packages. 'Private vehicles don't frequently use national highways. They typically hit highways only during long-distance travel. In contrast, commercial vehicles whether it's a long-haul lorry, intercity cab, or a tourist bus cover hundreds of kilometres every single day. They cross numerous toll plazas across multiple states. If toll relief is really the intention, then commercial vehicles should be the first to benefit,' Radhakrishna Holla, president of the Karnataka State Travel Operators Association (KSTOA) told The Hindu. According to Mr. Holla, the KSTOA has written a formal request to Union Minister Nitin Gadkari urging that the annual FASTag scheme be extended to commercial vehicles as well. 'Taxi drivers and public transport providers are among the most frequent users of highways. Even a single cab operator ends up paying more than ₹30,000 annually in tolls. A package like this could significantly reduce their burden, especially when fuel and maintenance costs are already skyrocketing,' he added. Nataraj Sharma, president of the Federation of Karnataka State Private Transport Associations, described the toll expenses for commercial vehicles as 'exorbitant and unsustainable.' Speaking to The Hindu, Mr. Sharma said, 'We end up shelling out thousands of rupees every year, just on tolls alone. For fleet owners with dozens of vehicles, this cost is multiplied several times over. It's only fair that the government offers similar annual pass options for commercial vehicle operators. These businesses form the backbone of logistics, public transport, and urban mobility. Without support, many small-scale operators will find it difficult to stay afloat.' Union Minister for Road Transport and Highways Nitin Gadkari announced on June 18 that users of private vehicles will soon be able to make up to 200 highway trips in a year by paying just ₹3,000 in toll fees. 'For a long time, there were concerns over toll fee. This decision will provide a big relief to the public. The average toll fee will come down to ₹15 from ₹50 to ₹100,' Mr. Gadkari said in a video message posted on X. According to him, the new pass available exclusively to private four-wheelers like cars, jeeps, and vans will slash toll costs. The toll fees for 200 trips, which was ₹10,000 currently, would be brought down to ₹3,000 after the annual pass is rolled out, resulting in a huge savings for the public, he said. The government has amended Rule 9 under the National Highways Fee (Determination of Rates and Collection) Rules, 2008, to implement the annual pass system. A dedicated portal for purchasing and renewing the pass will be made available on the Rajmarg Yatra app as well as through the websites of the National Highways Authority of India (NHAI) and MoRTH.
New Indian Express
24-06-2025
- Automotive
- New Indian Express
Commercial transporters want annual toll pass benefit too in Karnataka
BENGALURU: While the Ministry of Road Transport and Highways (MoRTH) has announced FASTag annual toll passes at Rs 3,000 for private vehicles, commercial transporters have demanded that similar offers also be extended to commercial vehicles (CV), which include cabs, maxi cabs, trucks and private buses. With the prepaid annual passes, private cars and vans can avail 200 single trips a year across all National Highways and National Expressways, for a fixed fee of Rs 3,000. With the new initiative rolling out on August 15, CV unions have demanded that Union Minister of Road Transport and Highways Nitin Gadkari introduce a scheme for them as well. Karnataka State Travel Operators Association (KSTOA) president Radhakrishna Holla said more than the private vehicles, the need for concessional annual toll passes is high for commercial vehicles. 'Not all private owners use their vehicles regularly. They use them occasionally and the scheme may benefit regular long-distance highway travellers. However, everyday, buses and trucks approximately use over 600 km of National Highways, crossing multiple tolls,' he said. One of the main intentions of introducing the annual pass is to deliver substantial cost savings for private users and reduce congestion at toll plazas.
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.'
