Thiruvananthapuram: Kerala Finance Minister KN Balagopal, in his budget presentation, announced a revision in the Life Time Road Tax for electric vehicles (EVs). The existing 5% tax will now be rationalized based on the cost of the vehicle. The move is aimed at boosting revenue and aligning taxation with the increasing adoption of EVs in the state.

Presenting the second Pinarayi Vijayan-led government's fifth budget in the Legislative Assembly, Balagopal said that the private electric vehicles priced above ₹15 lakh will be taxed at 8% of the vehicle’s cost. For EVs costing ₹20 lakh and above, the tax rate will be 10%. Additionally, electric cars with a battery rental facility will be uniformly taxed at 10% of the cost, irrespective of their price. The government expects to generate an additional ₹30 crore in revenue through this revision.

Apart from EV taxation, the budget also introduced a higher road tax for vehicles older than 15 years. Private vehicles that exceed this age threshold will face increased taxation, as the government aims to discourage the use of older, more polluting vehicles and promote environmentally friendly alternatives.