Central government employees including armed forces personnel posted in the state of Karnataka hitherto were enjoying the concession in the form of exemption for paying Life time tax (LTT), when when buying new vehicles in the state or bringing them from other states on the ground that they could be transferred out of Karnataka anytime.
Only Annual Tax were collected from Central government employees who opted to enjoy exemption from paying life time tax for their vehicles.
However, the Karnataka Government has partially withdrawn this concession with effect from 1st January 2012. Now Central government employees residing in Karnataka and owning motor vehicles will now have to pay lifetime tax (LTT) for their vehicles.
While those central government employees bringing in their vehicles from other states need to pay only annual tax as earlier, those already in Karnataka will have to pay LTT for vehicles they have already purchased here or going to buy in future.
Source: Times of India