The Karnataka Assembly has passed the Karnataka Motor Vehicles Taxation (Second Amendment) Bill, introducing a new cess on private vehicle registrations. Buyers of two-wheelers will now pay ₹500 extra, while car owners will be charged an additional ₹1,000. The bill was passed despite vocal opposition, with BJP lawmakers accusing the government of burdening citizens already grappling with high taxes and rising fuel prices.
The cess, the government says, will go toward the Karnataka Motor Transport and Allied Workers Social Security and Welfare Fund, which supports bus, taxi, and auto-rickshaw drivers. However, critics argue that placing this financial responsibility on vehicle buyers is unwarranted.
The move was met with fierce resistance from BJP legislators, who questioned the timing and necessity of the new levy. Former Deputy Chief Minister Dr CN Ashwath Narayan suggested that the government should match the funds collected through the cess, ensuring that the responsibility isn’t shouldered solely by taxpayers.
Despite the uproar, the bill was passed on a voice vote. Interestingly, while the ‘no’ votes seemed louder, Speaker UT Khader refrained from putting the matter to a count.
For vehicle buyers, this new cess is yet another expense in an already costly process. An entry-level scooter priced at ₹1 lakh will now come with an additional ₹500 at registration. Similarly, a budget hatchback priced at ₹6 lakh will incur a ₹1,000 charge.
Karnataka, being a significant market for two-wheelers, could see potential buyers delaying their purchases or reconsidering their options.
For the automobile sector, this decision comes at a time when rising input costs, global economic uncertainties, and subdued consumer sentiment are already challenging recovery.
