On Tuesday, the Karnataka Assembly passed the Karnataka Motor Vehicles Taxation (Second Amendment) Bill, 2024, despite strong opposition from BJP MLAs. 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.
Bill details
Law and Parliamentary Affairs Minister HK Patil introduced the bill on behalf of Transport Minister Ramalinga Reddy. The primary objective of this amendment is to raise additional funds for the Karnataka Motor Transport and Other Allied Workers Social Security and Welfare Fund. The new cess will be levied along with the existing 10 percent cess. Infrastructure projects and other social schemes in the state.
Opposition reaction
BJP MLAs, including leader of opposition R Ashok, strongly opposed the bill, arguing that this additional cess will burden the common man, especially after the increase in fuel tax earlier this year. Despite the opposition, the bill was passed by the Assembly and is now awaiting approval from the Legislative Council.
Purpose and effect of amendment
The Bill proposes a new sub-section (1B) under section (3A) of the Karnataka Motor Vehicles Taxation Act, 1957 to levy additional cess during registration of new vehicles. The move is aimed at contributing to the welfare fund supporting motor transport workers and allied sectors.
existing cess provisions
Apart from the new cess, the existing provisions of the Act already impose several cesses, including a 10 per cent cess for infrastructure projects and a 1 per cent cess for urban transport funding. The new cess will be added to the existing 3 percent cess on transport vehicles.
conclusion
While the new cess is intended to support the social security fund for workers in the transport sector, the opposition sees it as an additional financial burden on the public. As the bill heads to the Legislative Council, it remains to be seen what impact it will have on vehicle owners across the state.
