Vehicle owners to pay infrastructure cess

Vehicle owners to pay infrastructure cess
New Indian Express

BANGALORE: The motorists would soon have to pay another levy. This time to fund the infrastructure projects in the city.

The Bangalore Mahanagara Palike (BMP) would introduce infrastructure cess on all vehicles registered/operating in the city.

This would be the major revenue from motor vehicles to the civic body after abolition of octroi. However, the revenue is hardly any replacement to octroi.

But collection of the new cess is a problem. Collection through regional transport offices was not viable as transport department collects only one-time raod tax while infrastructure is a monthly cess.

BMP commissioner K Jairaj said that the civic body had held talks with insurance companies in this regard.

“The insurance companies could collect the cess along with the premium from vehicle owners,” he said.

Given a huge vehicular population in Greater Bangalore it is not going to be easy for the insurance companies. The city has about 25 lakh vehicles and CMC areas would bring in another 15 lakh of them.

Further, the private insurance companies that operate vehicle policies may not cherish the idea.

“There are many instances where vehicle owners don’t pay premium and that is our first concern. And there are many players in the business. BMP would have to rope in virtually every insurance company for the task which is impossible,” said an insurance professional.

The cess would be levied within next few months and it would cover Greater Bangalore.

Further, vehicle owners would have to file cess returns with BMP periodically.