Kerala Budget 2022: Hike in motor tax aiming to popularise e-vehicles


Thiruvananthapuram: The finance minister KN Balagopal in his budget for the financial year of 2022-23 proposed to increase the motor vehicle tax. There will be a one per cent increase in tax for vehicles cost up to Rs 2 lakh. The state expects additional revenue of 60 crores from this.

Currently, 10 per cent and 12 per cent tax are levied on vehicles cost up to Rs 1 lakh, and 2 lakh respectively. Vehicles priced above Rs 3 lakh are taxed 21 per cent.

The green tax for vehicles older than 15 years is increased by 50 per cent. The tax is increased for three-wheelers, private, heavy motor and other diesel vehicles. The state expects to receive an additional revenue of Rs 10 crore with this increment. The green tax aims to promote electric vehicles and discourage the use of diesel vehicles.

The budget also announced the plan for a one-time settlement of the motor tax. The state treasury aims for additional revenue of Rs 2 crore from this.

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