Karnataka Private Bus Federation Seeks Relief Measures Ahead of Budget

The Federation of Karnataka State Private Transport Associations on Monday submitted its pre-Budget memorandum to Chief Minister Siddaramaiah, stating that the private transport sector is “distressed” due to policy imbalances, rising taxation, unchecked aggregator operations and lack of financial support.

Key demands include:

• Cap on Shakti Travel Scheme
• Reduction in road tax
• Developing a pay-and-use bus terminal on Race Course Road

Cap on Shakti Travel Scheme

The federation urged the Government of Karnataka to introduce a district-level cap on the Shakti scheme, which offers free bus travel for women in state-run buses.

While acknowledging its welfare intent, private operators said the scheme has sharply reduced their passenger numbers and revenue.

They argued that a district-wise cap would balance social welfare with the survival of private bus businesses.

Reduction in Road Tax

Seeking rationalisation of motor vehicle tax for non-AC stage carriage buses, the association said high taxes have pushed 9,348 vehicles to register in neighbouring states, causing an estimated ₹300–400 crore revenue loss to Karnataka.

Sleeper buses pay about ₹4,440 per seat per quarter and seater buses ₹3,850, amounting to ₹5–6 lakh annually per vehicle. Over 3,000 non-AC 16- and 22-seater buses have reportedly been registered outside the state due to the tax burden.

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Pay-and-Use Bus Terminal Proposal

Private operators proposed a dedicated pay-and-use bus terminal near Race Course Road in central Bengaluru.

They said a structured terminal would reduce congestion, streamline operations and provide safer, organised boarding facilities, replacing the current system of scattered pick-up points.

Additional Demands

The association also sought extension of CNG vehicle life from 15 to 20 years with subsidies, amendment of Rule 153 to link tax to fitness certificates for older vehicles, subsidised housing for drivers in Bengaluru, and inclusion of lung diseases and certain heart attacks under welfare benefits.

It further proposed a dedicated welfare fund from the commercial vehicle cess and government-run driver training centres in every district to curb accidents.