Bengaluru
Starting April 1, the government's new tax policy will come into effect, leading to a double shock for vehicle owners. The Karnataka government has announced in the budget that a lifetime tax will be applicable to the purchase of yellow board vehicles priced under ₹10 lakh. As a result, the cost of purchasing new vehicles is set to increase significantly.
For yellow board vehicles priced under ₹10 lakh, a lifetime tax of 5% will be levied, which, including a potential cess, may rise to 7%. If a vehicle costing ₹10 lakh is purchased, owners will have to pay taxes ranging from approximately ₹50,000 to ₹70,000. This new rule was introduced in this year's budget.
Last year, a lifetime tax of 11% was imposed on yellow board vehicles costing over ₹10 lakh, along with an additional 2% cess, bringing the total tax to about 13%. This time, the new rule will apply to vehicles costing ₹10 lakh as well, meaning that many vehicle buyers will face a financial burden.
In addition, electric cars priced over ₹25 lakh will be subject to a 10% tax. The tax on mini trucks, which was previously 6%, will also increase to 8% starting in April.
Furthermore, due to rising steel prices, vehicle manufacturing companies are preparing to increase prices by 3% to 4% from April 1, which will serve as another shock for new vehicle buyers.
With the implementation of the new tax rules and the increase in vehicle prices, individuals looking to purchase new vehicles will inevitably need to spend more money.
