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2017 Karnataka Budget: Bikes priced above Rs 1 lakh gets dearer

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Pratheek Kunder

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2017 Karnataka Budget: Bikes priced above Rs 1 lakh gets dearer

People of Bengaluru are known to pay the highest price for two things – petrol and automobiles. And now it looks like, the automobile fans there have some more bad news. 

As a part of the 2017 Karnataka Budget, the government has decided to increase road tax to 18 per cent from the current 12 per cent. However, this new rule is applicable only to bikes that costs more than Rs 1 lakh. In short, all the premium bikes will now attract higher pricing in Karnataka. 

The tax structure for two-wheelers in Karnataka costing less than Rs 50,000 is 10 per cent whereas for two-wheelers costing more than Rs 50,000 and less than Rs 1 lakh is 12 per cent. While majority of the two-wheelers sold in India fall below the Rs 1 lakh price bracket, there’s also a large group of buyers who purchases bikes costing more than Rs 1 lakh. 

Mass market manufacturers like Royal Enfield, Bajaj and Yamaha are going to feel the heat. However, big bike manufacturers like Triumph, Kawasaki, Ducati and Harley-Davidson are the ones who will face the maximum heat as all their bikes are priced above Rs 1 lakh.

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