Navigating road tax adds to cost of vehicle ownership in Karnataka

NT Correspondent

Bengaluru: Buying a new vehicle is an exciting experience, but it also comes with a lot of responsibilities and costs.

Besides  registration, getting a licence plate and obtaining a PUC certificate, one must also pay an additional fee known as road tax. This fee can be paid at once during the vehicle registration process or paid over the lifespan of the car or bike. In India, road taxes are collected by state governments and not the Union. As a result, each state has its own unique set of standards and rates for road taxation.

For example, car owners in Bengaluru must pay Bengaluru road tax in accordance with the Karnataka state government regulations. But what exactly is road tax? Well, any vehicle that uses public roads, national highways or state highways is required to pay a road fee.

The revenue raised through road taxes is used by the government to maintain, repair and expand roadways. When it comes to Bengaluru, the Karnataka Motor Vehicles Taxation Act of 1957 is followed, which mandates vehicle owners in Bengaluru to visit their local Regional Transport Office (RTO) to register their vehicles and pay the necessary taxes.

The state government is in charge of collecting the road tax, which over the vehicle's lifetime, can range from 10 per cent to as much as 90 per cent of the vehicle's cost. Computation of the Karnataka road tax takes into consideration several factors, including the vehicle's cost, age, number of seats, fuel type, engine capacity and wheels.