Non-Karnataka registered vehicle owners targeted by transport officials and netizens

Bengaluru: Chaithanya, from Mumbai (name changed) came to Bengaluru this January after his financial services company posted him here. A regular on Facebook, Chaithanya was shocked when he saw that someone had posted his car’s pictures and scribbled objectionable posts saying “Pay up road tax or get out of Karnataka”.

In the past three months, as the state transport officials have upped the ante against the owners of other-state registered vehicles for the non-payment of the lifetime road tax, it has stirred up the emotions of the locals who now see them as cheaters. Hundreds of such owners have now come under the banner and are demanding a one-nation-one-road-tax. Bengaluru has the highest floating population and it is more than the local population. The state needs to look at the policy as these taxes run into thousands and some even into lakhs per vehicle.

Many non-Karnataka registered vehicle owners say that young professionals work in different states during their career and it would be difficult for them to buy a new vehicle in each of the states they work in, or pay a Lifetime Tax (LT) in each of the states and apply for refund from the earlier state which is next to impossible to obtain.

“People from other states are going to stay for a short time in the city. Why should the RTO collect tax for a period of 15 years? What is the guarantee that my vehicle will run for 15 years or that I would use the vehicle for 15 years in Karnataka? If all the states apply this draconian rule, the people would be put to great hardship.” says S. Ramasubramanian.

He added, “When our PAN card, license and passport are valid across India, why can’t I drive my vehicle across India? The Central government is in the process of signing a pact with Bangladesh, Bhutan and other neighbouring countries for a seamless movement of vehicles and a smooth facilitation of the economy, then why is the same not possible within India? People from Karnataka also work in other parts of India. They will also feel the heat if other states apply the same law.”

Rishabh (name changed), another victim said, “I was traveling from to my residence with my wife when a few touts jumped all over the car near the ITPL area and demanded that we come over to side. I was ordered to come over to the RTO jeep. I got out with my papers, I was asked to produce these along with my original ID-card. I said that I had all copies of my vehicle papers, and my PAN, Aadhar card, etc. but those were not acceptable to them. One of the touts took my ID-card inside the car and the RTO official said that I had to submit my ID-card or else the vehicle would be impounded. This happened at 6pm, in the middle of a road and we had to rush back as our kids were alone at home. I had no option but to give in and surrender my official ID card as my priority was to get back home to my children.”

Thousands of vehicle owners from other states who are living in the city primarily due to a job change or on deputation say that they are not against paying the taxes. But it should not be atrocious in nature. The government can levy taxes on an annual basis in a reasonable way.

However, the RTO officials are continuing with their drives to crackdown on non-Karnataka registration vehicles plying pan city, to collect the lifetime road tax from vehicles registered outside Karnataka after the Karnataka High Court vacated a stay on the petition against collecting tax from vehicles registered in other states. There are lakhs of IT employees from outside Karnataka working at different companies in Bengaluru. Some of them come to the city for barely a year or two but they have to pay the lifetime road tax that amounts to thousands of rupees.

“It is sad to see that non-KA people are projected as tax evaders. We pay tax on the groceries we buy, pay VAT on electricity and fuel we use. We pay close to 28 per cent VAT on petrol and Rs 16 per litre of diesel, plus the additional cost on using Bharat IV fuel norm. Our income is taxed, our expenses are taxed, and we spend all our earned money in Bengaluru, whereby the government earns its revenue. Then why are we branded as tax evaders?” pointed another non-Karnataka vehicle owner.

It’s time to have a permit policy on an annual basis

Experts and activists say that the lifetime road tax should be centralized like the income tax, to avoid discrimination. It can centralize the system and then give the refund back to the state. Till such time at least an annual permit on a nominal basis should be introduced by the state to stop this harassment.

Sanjeev V Dyamannavar, member of Praja RAAG, an advocacy group said, “Paying lifetime tax and forcing people to pay tax for 15 years is atrocious and is not at all justified. We call ourselves a unified country, then why we are not acting like one? There should be a unified registration process where the government should centralize the vehicle registration system and make it online so that every state RTO can check the veracity of the vehicle and give a clearance.”

While professor M N Sreehari, head of TEST (Traffic Engineers and Safety Trainers) presses on the need for one-road-one-tax. “There is a new transport policy which states that there should be one registration throughout the country. The policy has been discussed in parliament but it is yet to come into force. When the license is given to drive in the entire country, which is generated by a state, it is justifiable that tax is also paid to one state which enables the person to drive anywhere in India.”

Waseem Memon, the man behind the campaign Drive Without Borders said, “The Karnataka Motor Vehicle Taxation Amendment 2014 is atrocious in nature as it was passed without having a tracking mechanism in place. This very amendment is against the federal principles and the freedom of movement which our constitution guarantees.”

Demands by the non-Karnataka vehicle owner’s forum

• Unified Registration of vehicles valid across the nation. (Just like our DL is valid across the nation)
• 15 Years of unified lifetime tax collected at onetime, valid across the nation
• Building a track mechanism to track the vehicles entering into a particular state
• Build an online Tax transfer Mechanism from one state to another
• Central government is reportedly coming up with the unified tax law. This bill will ensure that private vehicle owners are not harassed by different state RTO. This new MV bill talks of stringent fines for violations and unified taxation for motor vehicles.

What the Karnataka Motor Vehicle Act 'Taxation act 2014' says

On 28th Feb 2014, Karnataka Government amended the Motor vehicle taxation (known as Karnataka Motor Vehicles Taxation (Amendment) Act 2014.This act says that ‘’Any vehicle plying continuously in Karnataka for more than 30 days needs to pay the Hefty Life Time Tax levied by the Government Of Karnataka’’ The CMV 1988 states that any motor vehicle plying continuously in other state needs to be registered in 12 months.