Karnataka Transport Department Recovers Over Rs 62.4 Crore in Tax Evasion Crackdown
The Karnataka transport department has successfully recovered more than Rs 62.4 crore in taxes and penalties over the past five years, targeting vehicles registered outside the state but operating locally without proper tax payments. This significant enforcement effort highlights widespread non-compliance, particularly in urban areas.
Bengaluru Leads in Violations and Collections
A major portion of the collections, nearly Rs 54.6 crore, came from the Bengaluru division alone, underscoring the city's role as a hotspot for tax evasion. Data reveals that cases were filed against 773 two-wheeler owners and 4,504 car owners across Karnataka. Bengaluru accounted for a staggering 85% of these violations, with 747 two-wheelers and 3,739 cars booked, indicating a pervasive issue in the metropolitan region.
Common Tactics Used by Vehicle Owners
A senior transport official explained the evasion methods: "Many vehicle owners register high-end cars in states with lower tax rates, such as Delhi or Kerala, and then bring them to Karnataka for extended use, despite having residence or business establishments here. This is a deliberate attempt to avoid paying local taxes." The official added that in other instances, owners fail to re-register vehicles in Karnataka even after obtaining no-objection certificates from their original states, continuing to use them for years without proper documentation.
Enforcement Intensifies Over the Years
The department has ramped up its enforcement drives in recent years. In 2021-22, cases were booked against 232 two-wheeler owners and 424 car owners, with 226 two-wheelers and 395 cars from Bengaluru. By 2025-26, numbers surged sharply to 164 cases against two-wheelers and 2,278 against car owners, including 158 two-wheelers and 1,746 cars from Bengaluru. During that fiscal year, the department collected nearly Rs 41.4 crore in taxes and penalties, with Rs 34.5 crore originating from Bengaluru.
Revenue Targets and State Initiatives
Following the launch of five guarantee schemes in 2023, Karnataka has set higher revenue targets for the transport department, prompting Regional Transport Offices (RTOs) to enhance enforcement alongside regular tax collection from newly registered vehicles. For the current year, the department aims to achieve a revenue target of Rs 15,550 crore. Karnataka operates 67 RTOs and Assistant Regional Transport Offices (ARTOs), along with 15 check-posts to monitor compliance.
Breakdown of Tax Evasion by Division
The data provides a detailed look at the scale of evasion across different regions:
- Bengaluru: 747 two-wheelers, 3,739 cars, Rs 54.6 crore collected.
- Bengaluru Rural: 3 two-wheelers, 20 cars, Rs 1.8 lakh collected.
- Mysuru: 9 two-wheelers, 213 cars, Rs 2 crore collected.
- Shivamogga: 5 two-wheelers, 52 cars, Rs 48.8 lakh collected.
- Belagavi: 8 two-wheelers, 239 cars, Rs 1.8 crore collected.
- Kalaburagi: 1 two-wheeler, 241 cars, Rs 3.3 crore collected.
In total, 773 two-wheelers and 4,504 cars were involved, with overall collections exceeding Rs 62.4 crore. This crackdown reflects the state's commitment to ensuring tax compliance and boosting revenue for public welfare schemes.
