Kerala Budget boosts EV sector with road tax cut, buses get 50% relief

The Kerala budget has come as relief to tourist bus owners in the state as Chief Minister V D Satheesan has announced measures aimed at reducing the tax burden on vehicle owners, along with encouraging public transport and electric vehicle adoption, and providing relief to motorists with pending traffic fines.

Among the major announcements is a 50 per cent concession on quarterly tax for stage carriage buses, a move intended to support the public transport sector.

The budget has also proposed a substantial reduction in quarterly taxes for All India Tourist Permit (AITP) buses. Satheesan said the move was to encourage more operators to register their vehicles in Kerala and strengthen interstate travel services. The quarterly tax for AITP buses will be reduced from ₹2,000 to ₹900 per seat, while the tax on sleeper berths will be cut from ₹3,000 to ₹1,500.

In another measure aimed at attracting more vehicle registrations to the State, the government has revised the tax structure for trailer vehicles. Under the existing system, trailers weighing between 15,000 kg and 20,000 kg attracted a quarterly tax of ₹2,550 plus ₹130 for every additional 250 kg. For trailers weighing above 20,000 kg, the tax is ₹5,150 plus ₹250 for every additional 250 kg.

The budget proposes to remove the higher tax slab for trailers weighing above 20 tonnes and apply the lower rate of ₹2,550 plus ₹130 for every additional 250 kg to all trailers above 15 tonnes.

Relief for EV owners
The budget has also revised the road tax structure for electric vehicles.

Road tax on electric vehicles priced up to ₹10 lakh has been reduced from 5 per cent to 3 per cent. Vehicles priced between ₹15 lakh and ₹20 lakh will now attract a tax of 5 per cent instead of the existing 8 per cent. However, electric vehicles priced above ₹40 lakh will attract a higher road tax of 15 per cent, up from the existing 10 per cent. Tax rates for other price categories remain unchanged.

Other measures
The government has also enhanced the motor vehicle tax concession available to differently-abled persons. The eligible vehicle value limit has been increased from ₹7 lakh to ₹15 lakh, enabling beneficiaries to avail concessions on a wider range of vehicles.

Moreover, as a relief to motorists with pending traffic fines, the budget has announced an e-challan amnesty scheme. Under the scheme, citizens can settle pending challans by paying only 50 per cent of the fine amount.