Policy Shift on Road Tax Gives Fresh Breather to Travel Industry

Bengaluru | March 27 :

In a significant policy shift, the Karnataka government has revised its road tax structure, offering relief to select private buses and tourist vehicles in a move aimed at boosting in-state registrations, strengthening the tourism sector, and plugging revenue leakages.

The reform comes in response to a long-standing issue where high road taxes in Karnataka had pushed many tourist vehicles to register in neighbouring states, leading to loss of revenue and creating an uneven competitive environment for local operators. 

With proactive intervention by Transport Minister R. Ramalinga Reddy, the government has introduced targeted measures to ease the tax burden while encouraging compliance within the state.

The revised policy is being seen by industry stakeholders as a balanced and forward-looking initiative that could serve as a model for other states. It is expected to improve competitiveness, support allied sectors, and enhance overall revenue in the long run.

Welcoming the move, the Karnataka State Travel Operators’ Association, led by its President K. Radhakrishna Holla, met the Transport Minister to express gratitude for addressing the concerns of the industry. Holla, who also serves as a Director at FKCCI, has been instrumental in consistently representing the issue, coordinating with stakeholders, and pushing for policy intervention.

The association credited the government for responding positively to their demands and described the reform as a major relief for travel operators. Representatives noted that the decision would encourage more vehicle owners to register within Karnataka, thereby strengthening the state’s tourism and transport ecosystem.

They also extended their appreciation to all transport associations and stakeholders who collectively worked towards bringing the issue to the government’s attention, and urged vehicle owners to support the initiative by opting for Karnataka registration.