Lifetime tax on motorcycles which are priced above Rs 1 lakh has been increased from 12 percent to 18 percent in Karnataka. It is believed that the increase will cause a minimal dent in sales.
The government says the Motor Vehicle Tax on two wheelers hasn't been increased since 2010 and the hike expected to return an additional Rs 60 crore in revenue. Most of the premium motorcycles are now priced at Rs 1 lakh.
Roopa Manjunath, showroom in-charge at Sai Ram Autocraft, said, "There may be a 5-10% drop in sales. Brand-conscious customers do not hesitate to shell out a little extra these days."
According to Sainik Raj Chordia, a KTM partner-dealer, "The tax levied in Maharashtra and Kerala is 20%, which makes bikes still cheaper in our state. Moreover, most bikes are sold on installment basis through bank loans. The government has protected the common man by taxing only the high-end bikes."
Ashok Yaraganal, brand and marketing head of Riders Republic (bike club) says, "The decision to buy a luxury bike is driven by passion and not by the need to commute. But where is the good infrastructure as the government happily collects heavy taxes?"
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