Luxury 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.