Karnataka imposes 10% lifetime tax on high-end EVs: Here's why
What's the story
The Karnataka government has revealed a new policy that imposes a 10% lifetime tax on high-end electric vehicles (EVs) during registration, according to the Economic Times.
This decision, which affects electric cars, jeeps, and buses, is designed to boost state revenue and regulate the expanding EV market.
By 2030, the state government anticipates around 23 lakh electric vehicles in Bengaluru, a significant jump from the current 80,000.
New amendment
Additional cess for worker welfare fund
The Karnataka Motor Vehicles Taxation (Amendment) Act, which was published in the special state gazette after receiving governor's approval, enforces this new tax structure.
The Act also requires a 3% additional cess on transport vehicles to support the Karnataka Motor Transport and Other Allied Workers Social Security and Welfare Fund.
This initiative aims to enhance worker welfare within the transportation sector.
Desperate times
Stringent measures to combat water crisis in the state
Separately, in light of the state's severe water crisis, the Karnataka administration has implemented strict measures, including a Rs. 5,000 fine for washing car with potable water.
The Karnataka Water Supply and Sewerage Board has banned using drinking water for non-essential activities like car washing, construction, and gardening.
During an emergency meeting earlier this week, Deputy Chief Minister DK Shivakumar stressed the government's dedication to prioritizing irrigation and water management projects.