Motor vehicle tax revised from April 1; revised rates impact older and electric vehicles

THIRUVANANTHAPURAM: A significant change affecting vehicle users in Kerala has been implemented from April 1. This change impacts owners of vehicles older than 15 years as well as those purchasing new electric vehicles. The motor vehicle tax in the state has been revised following an order issued based on the announcement in the budget, which came into effect today.

The motor vehicle tax has been increased for different categories. For two-wheelers that have crossed the 15-year registration period and private three-wheelers, the tax has gone up by Rs 400. Cars are categorised by weight, with the tax increased by Rs 3,200 for cars weighing up to 750 kg, Rs 4,300 for cars between 751 kg and 1,500 kg, and Rs 5,300 for cars exceeding 1,500 kg. Additionally, the classification of ordinary, pushback, and sleeper seats in contract carriage vehicles has been removed, and the tax has been unified for them.

The taxation system for electric vehicles has also changed. Previously, electric vehicles were taxed at five percent of their total price regardless of cost. Now, vehicles priced up to Rs 15 lakh will continue to have a five percent tax rate. However, the tax for vehicles costing between Rs 15 lakh and Rs 20 lakh has been raised to eight percent, and vehicles priced above Rs 20 lakh will be taxed at 10 percent. For electric two-wheelers and three-wheelers, the five percent tax rate remains unchanged.