Vehicle registration fees hiked in Karnataka

The Karnataka Assembly has passed a bill for Rs 500 cess on cars and bikes at the time of registration, reports said on December 18.

The amended law mandates a 3 per cent additional fee on transport vehicles.

The new law will raise the cost of vehicle registration in the state.


Karnataka Governor Thaawarchand Gehlot had given his nod to the Karnataka Motor Vehicle Taxation (Amendment) Act, 2024, on March 6. The law was included in the official gazette the following day.

At present, Karnataka's road taxes are already among the highest in India -- between 13 per cent and 20 per cent. The new 3 per cent will significantly add to the tax burden on vehicles.

The amended law also enables the state government to levy a lifetime tax on EVs. Under the law, EVs that costs more than Rs 25 lakh will draw a 10 per cent tax on registration.