THIRUVANANTHAPURAM: The government has decided to reduce the tax on tourist buses to increase the number of all India tourist buses getting registered in the state. When the tax is reduced, the number of vehicles registered in the state will increase. It is estimated that the state can earn more revenue through it. At present, Kerala charges the highest amount for vehicle registration. Because of this, the tourist buses which have to be registered here are registered in states like Nagaland and Arunachal Pradesh, where the tax is comparatively less. These buses then operate in Kerala with the All India Permit granted by the Central Government.

The state suffers a loss of tax when the buses get registered in other states. In addition, the state also suffers a loss in registration and fitness test fees. Finance Minister KN Balagopal stated in the budget announcement that it has been decided to reduce the tax on tourist buses to ensure that the registration of these types of buses is done in Kerala itself. It will come into effect in April.

Change of rates is as follows

Type of Vehicle ---------- Current Quarterly Rate---------- Proposed Quarterly Rate

All India Tourist Bus
(Ordinary Seat)------------- ₹2250/Seat----------------------- --------- ₹1500/seat
Pushback Seat -------------------- ₹3000/Seat -------------------- ------- ₹2000/seat
Sleeper Berth------------------------- ₹4000/Berth -------------------- ---- ₹3000/berth