Thiruvananthapuram: The Kerala budget for 2023-24, presented by Finance Minister K N Balagopal, included several revisions in tax and duties on the purchase of new vehicles.
The vehicle cess has been increased by Rs 100 for motorbikes and Rs 200 for cars. The hike is expected to generate additional revenue of Rs 7 crore.
One-time cess on newly registered vehicles are as follows:
Two-wheelers - Increased from Rs 50 to Rs 100
Light Motor vehicles - Increased from Rs 100 to Rs 200
Medium Motor Vehicles - Increased from Rs 150 to Rs 300
Heavy motor vehicles - Increased from Rs 250 to Rs 500
The one-time tax on motorcycles was increased by 2%.
Changes in one-time tax for new motor cars and private service vehicles for personal use:
Till Rs 5 lakh- 1% increase
Rs5-15 lakh- 2% increase
Rs 15-20 lakh- 1% increase
Rs 20-30 lakh- 1% increase
Rs20-30 lakh- 1% increase
Above Rs 30 lakh- 1% increase
The Finance Minister is expecting a Rs 340 cr increase in tax mop up through the hike.
At present, the one-time tax for a new electric motor cab and electric tourist motor cab ranges from 6% to 20%. This has been reduced to 5% in the budget.
Since the one-time tax on all types of electric vehicles is fixed at 5% of the purchase value for 15 years, the existing 50% tax exemption for such vehicles for the first 5 years has been dispensed with, the finance minister said during his budget presentation.
