In 5 years, taxes and penalties on out-of-state vehicles earned Karnataka ₹62.4 crore

• Published On Apr 6, 2026 at 10:13 AM IST

The numbers saw a sharp rise in 2025-26, with 164 cases booked against two-wheelers and 2,278 against car owners.

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The transport department has recovered more than ₹62.4 crore in taxes and penalties over the past five years from vehicles registered outside the state but plying locally without paying taxes.

A major share of the collections came from Bengaluru division, which accounted for nearly ₹54.6 crore through enforcement drives.

Data from the department shows that cases were booked against 773 two-wheeler owners and 4,504 car owners across Karnataka for tax evasion. Bengaluru accounted for the bulk of the violations — 85 per cent — with 747 two-wheelers and 3,739 cars booked, underscoring the scale of non-compliance in the city.

A senior transport official said: “There are several instances of vehicle owners registering high-end cars in other states where tax rates are lower, and then bringing them to Karnataka for prolonged use. Many do this despite having residence or business establishments in the state, with the intention to avoid paying tax.”

“… In other cases, owners fail to re-register vehicles in Karnataka even after obtaining a no-objection certificate from the original state and continue to use them for years. We have also seen instances of people purchasing used high-end cars from Delhi, Kerala and other states but delaying registration in Karnataka,” the official added.

Over the years, the department has intensified enforcement drives to identify such violations. In 2021-22, cases were booked against 232 two-wheeler owners and 424 car owners, of which 226 two-wheelers and 395 cars were from Bengaluru division.

The numbers saw a sharp rise in 2025-26, with 164 cases booked against two-wheelers and 2,278 against car owners. Of these, 158 two-wheelers and 1,746 cars were from Bengaluru alone. During the fiscal, the department collected nearly ₹41.4 crore in taxes and penalties, with ₹34.5 crore coming from Bengaluru division.

Following the launch of the five guarantee schemes in 2023, the state has set higher revenue targets for the transport department, prompting RTOs to step up enforcement alongside regular tax collection from newly registered vehicles.

For the current year, the department has a revenue target of ₹15,550 crore. Karnataka has 67 RTOs and ARTOs, along with 15 check-posts.