Kerala’s revised vehicle tax rates to take effect from April 1; EVs, old vehicle owners to pay more

Kozhikode: Kerala’s revised motor vehicle tax rates will come into effect from April 1, as per the state budget announcement on February 7. The changes will primarily impact electric vehicles and vehicles older than 15 years.

For motorcycles exceeding 15 years and private-use three-wheelers, the tax has increased by ₹400 for five years. Car owners will also see higher rates, with a ₹3,200 hike for vehicles up to 750 kg, ₹4,300 for those between 750 kg and 1,500 kg, and ₹5,300 for vehicles above 1,500 kg. Additionally, the categorisation of contract carriage vehicles into ordinary, pushback, and sleeper classes has been removed, streamlining tax rates. Similarly, the tax on stage carriages has been reduced.

Under the new policy, registration renewal will be valid for five years. Previously, electric vehicles were taxed at 5% of their price. Now, EVs priced up to ₹15 lakh will continue to be taxed at 5%, but those between ₹15 lakh and ₹20 lakh will be taxed at 8%, while EVs above ₹20 lakh will incur a 10% tax. The tax for electric two-wheelers and three-wheelers remains at 5%. The hike has raised concerns among prospective EV buyers.

The Motor Vehicles Department issued the order, confirming its implementation from April 1. Authorities have instructed that if the tax was paid before March 31 (From the preceding year's April 1), the revised amount must be collected without waiting for an audit.