The State Transport Department has decided to waive the motor vehicle tax for commercial vehicles by 50% for the month of June. Deputy Chief Minister Lakshman Savadi, who is also the Transport Minister, stated that this decision was taken in light of the restrictions that were imposed following the outbreak of the second wave of COVID-19.
The waiver has been announced as a special case under section 16 (1) of the Karnataka Motor Vehicles Tax Act, 1957, but does not apply to newly registered passenger vehicles, stated a press release from the transport department.
‘Too little, too late’
Private operators are unhappy with the sop, as they have been demanding a waiver for six months. “This is too little, too late,” said K. Radhakrishna Holla, president of Karnataka State Travel Operators’ Association.
“The lockdown and weekend restrictions were in place for more than 60 days. We had cooperated with the government when Road Transport Corporations went on strike earlier in April, despite not making any profit,” he said.
Travel operators and owners of passenger vehicles were in financial distress and even banks that had announced a blanket moratorium for six months last year had not extended the same benefit this time around. “The second wave has hit us hard,” he said.
Mr. Holla urged the government to announce at least 50% waiver in motor vehicle tax for six months. “We are still waiting for the official order to be issued. We will decide on the next course of action once the order is issued,” he added.
