Kerala’s steep re-registration fee hike for old vehicles to burn a hole in owners’ pockets

Thiruvananthapuram: Vehicle owners in Kerala face a major setback as re-registration fees for older vehicles have been hugely increased. The fee for re-registering two-wheelers over 20 years old has risen from ₹500 to ₹2,000, while for four-wheelers it has jumped from ₹800 to ₹10,000. For auto-rickshaws, the fee has increased from ₹800 to ₹5,000.

This comes on top of the earlier blow from the state government’s decision in the last budget to double the road tax for old vehicles. Re-registering a small car could now cost up to ₹20,000, including both the fee and road tax. In addition, the green tax has been raised from ₹400 to ₹600. Once automated testing centres become operational, owners will also be required to pay for fitness testing. When factoring in the cost of repairs and repainting, the total expenses may exceed the vehicle's market value.

Though the revised fee structure was implemented by the Central Government, the revenue will benefit the state government, as the amount collected will go to the state treasury. The increased rates came into effect from August 20, as per the central notification. Vehicles re-registered after this date will be subject to the revised fees. However, due to the delay in updating the Vahan software, registration renewals were disrupted on Friday in most offices across the state.

The Central Government had previously raised the re-registration fees for vehicles over 15 years old, but the Kerala High Court had issued a temporary stay on its implementation. Until a final verdict is delivered, the old fee structure remains applicable.

Earlier, the proposed increase was ₹500 to ₹1,000 for two-wheelers, ₹800 to ₹2,000 for auto-rickshaws and ₹800 to ₹5,000 for four-wheelers.

If the court allows the new rates, all vehicles already re-registered under the old rates may be required to pay the additional amount retroactively. This is separate from the new hike now imposed on vehicles over 20 years old.

Road tax hikes from previous budget (Old rate → New rate):

• Two-wheelers: ₹900 → ₹1,350
• Small cars: ₹6,400 → ₹9,600
• Vehicles between 750 kg and 1,500 kg: ₹8,600 → ₹12,900
• Vehicles above 1,500 kg: ₹10,800 → ₹16,200