Karnataka government recently raised the road tax on bikes above INR 1 lakh from 12 percent to 18 percent. The state is known for expensive on-road prices of the bikes while petrol prices are even high in the state. Bikes under INR 50000 will be charged with 10 percent road tax while those falling in INR 50,000-1,00,000 will have to pay 12 percent for the same.
Most of the bikes that re sold in India fall under the price segment of INR 1 lakh while brands like Royal Enfield and KTM only offer products above INR 1 lakh. Newly launched Yamaha FZ25 would even be more expensive on the roads of Karnataka. Other like Ducati, Triumph and Harley Davidson will be the worst affected brands by this decision.
The difference between on-road prices in Delhi and Bangalore is quite large, putting the new motorcycle buyers under more pressure in the state of Karnataka. This can even result in a marginal fall of sales of some brands. The effective price hike would be applicable from April 1, 2017.
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