Karnataka Private Bus Operators Seeks Relief Measures Ahead of Budget 2026
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.
Their key demands include:
- Cap on Shakti Travel Scheme
- Reduction in road tax
- Developing a pay-and-use bus terminal on Race Course Road
“Our private bus operators have always supported public mobility and ensured uninterrupted services. However, the sector is now under severe financial strain due to policy imbalance, high taxation, and unregulated competition,” Nataraja Sharma, President, Federation of Karnataka State Private Transport Associations told Coach Builders India.
“Through our pre-Budget memorandum, we urge the Hon’ble Chief Minister to adopt a balanced approach that protects welfare schemes while ensuring the survival of private operators and safeguarding livelihoods in Karnataka,” he added.
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.
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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.
“Through our pre-Budget memorandum, we urge the Hon’ble Chief Minister to adopt a balanced approach that protects welfare schemes while ensuring the survival of private operators.”
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.
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