On Tuesday, the Karnataka Assembly passed the Karnataka Motor Vehicles Taxation (Second Amendment) Bill, 2024, despite strong opposition from BJP legislators. This new Bill introduces an additional cess of Rs 500 for two-wheelers and Rs 1,000 for cars at the time of vehicle registration.
Details of the Bill
The Bill was presented by Law and Parliamentary Affairs Minister H K Patil on behalf of Transport Minister Ramalinga Reddy. The primary aim of this amendment is to collect additional funds for the Karnataka Motor Transport and other Allied Workers Social Security and Welfare Fund. The new cess will be levied alongside the existing 10 percent cess for infrastructure projects and other social schemes in the state.
Opposition Response
BJP legislators, including Leader of Opposition R Ashok, strongly opposed the Bill, arguing that this additional cess would burden the common man, especially after the recent fuel tax hike earlier this year. Despite the opposition, the Bill was passed by the Assembly and is now awaiting approval from the Legislative Council.
Purpose and Impact of the Amendment
The Bill proposes a new sub-section (1B) under section (3A) of the Karnataka Motor Vehicles Taxation Act, 1957, to impose the additional cess during the registration of new vehicles. This move is intended to contribute to the welfare fund supporting motor transport workers and allied sectors.
Existing Cess Provisions
In addition to the new cess, the existing provisions of the Act already levy several cesses, including a 10 percent cess for infrastructure projects and a 1 percent cess for the Urban Transport Fund. The new cess will add to the existing 3 percent cess on transport vehicles.
Conclusion
While the new cess is aimed at supporting social security funds for workers in the transport sector, the opposition views it as an additional financial burden on the public. As the Bill moves to the Legislative Council, it remains to be seen how this will impact vehicle owners across the state.
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