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Karnataka imposes extra levy on Luxury motorbike

Triumph Motorcycles IndiaLuxury motorcycles in Rs 1-lakh above category will be costlier as the government has announced in its state financial budget that it would increase the road tax on bikes priced above Rs 1 lakh from 12 percent to 18 percent.

While presenting the budget on Wednesday, the Karnataka Chief Minister Siddaramaiah said this is the raise on luxury motorcycle coming after a gap of seven years. The government intends to net  an additional Rs 60 crore revenue by increasing the tax on motorcycle.

Siddaramaiah said that the tax on two-wheelers has not been increased since 2010. However, the government did not change the tax structure of bikes and scooters priced below Rs 1 lakh.

Two-wheelers leads the pack of private vehicles in Karnataka, which has around 1.23 crore two-wheelers against 1.6 crore private vehicles, excluding transport vehicles.

More than 11 lakh two-wheelers were registered in 2016. Though most of the two-wheelers comes within the bracket of Rs 65,000-Rs 1 lakh, motor bikes that are sought after by youngsters usually cost a little above Rs 1 lakh.

As far as imported bikes are concerned, the tax is applicable in accordance with total cost incurred in importing them or the value given in the ‘bill of entry.

About Anitha

Backed by over 10 years experience with India’s top media house “The New Indian Express”, Anitha is interested in writing all aspects of automobile industry. Her qualification MSc (Industrial-Psychology) helps her to deeply analyse the auto manufacturing industry.

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