Private Bus Operators Submit Pre-Budget Memorandum to Karnataka Government Seeking Shakti Scheme Cap and Tax Reforms

Private bus operators in Bengaluru have submitted a detailed pre-budget representation to the Karnataka Federation of Bus Operators, urging it to escalate their concerns to the Government of Karnataka ahead of the upcoming state budget.

In their memorandum, operators have highlighted the financial stress caused by declining ridership, high state taxes, and competitive pressure from welfare-driven public transport policies.

They have specifically sought rationalisation of motor vehicle tax for non-AC stage carriage buses and policy recalibration to protect small and medium-scale private transporters.

Private transporters in Bengaluru have urged the Karnataka government to introduce a district-level cap on the Shakti scheme, arguing that the free travel initiative has significantly affected their earnings.

The Shakti scheme, launched by the Government of Karnataka, provides free bus travel for women in state-run buses.

While the policy has increased ridership in public transport, private operators claim it has led to a sharp drop in passenger numbers for their services.

Transporters argue that limiting the scheme’s implementation to a district-wise basis could help balance public welfare goals with the survival of private bus businesses.

Demand for Paid Bus Terminal Near Race Course Road

In addition to seeking policy changes, private operators have proposed developing a paid bus terminal near Race Course Road in central Bengaluru.

They contend that a dedicated terminal would streamline operations, reduce congestion, and provide organised boarding facilities for private buses, which currently operate from scattered points across the city.

According to operators, a structured terminal system would also enhance passenger convenience and improve safety standards.

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High Taxes Push Registrations Outside State

Transporters have also raised concerns about Karnataka’s high motor vehicle taxes, especially for non-AC 16- and 22-seater buses.

Industry representatives claim that more than 3,000 such buses have been registered outside Karnataka in recent years to avoid the state’s higher tax burden.

Operators argue that this trend reflects the financial strain faced by small and medium-scale transport businesses.

They have urged the state government to rationalise taxes to prevent further outflow of registrations and revenue.

Call for Policy Balance

Private bus associations maintain that they are not opposed to welfare measures like the Shakti scheme but seek a balanced approach that ensures their economic viability.

They have requested consultations with government officials to address operational challenges, tax concerns, and infrastructure needs.