Registration of new commercial vehicles, EVs costing above Rs 25 lakh becomes costlier

BENGALURU: Registration of new transport or commercial vehicles in Karnataka will cost more from May 1. Governor Thaawarchand Gehlot had given his assent to The Karnataka Motor Vehicle Taxation (Amendment) Act, 2024 on March 6 and the new legislation was gazetted on March 7.

Transport/commercial vehicles costing under Rs 10 lakh earlier had to pay Rs 100 per seat as tax every three months and a vehicle with four seats had to pay Rs 400. Under the changed rules, a 5 per cent lifetime tax will be levied on this category of vehicles.

Taxis costing under Rs 10 lakh will have to pay Rs 50,000 as lifetime tax while commercial electric vehicles costing over Rs 25 lakh will have to pay 10 per of the price as tax. Electric cars costing over Rs 25 lakh, used for commercial purposes, will have to pay Rs 2.5 lakh as lifetime tax. This category of vehicles was earlier exempt from paying tax.

Construction equipment vehicles will now have to pay 8 per cent lifetime tax against the earlier 6 per cent.