In a move to generate more funds, Kerala Finance Minister Thomas Isaac hiked the motor vehicles tax.
The tax rate of motor cycles not exceeding Rs 2 lakh will be increased by 1% and that of motor cars and private services vehicles for personal use not exceeding value of 15 lakh will be increased by 2%. Rs 200 crore additional revenue is expected through this measure.
The Kerala FM also announced a 2% increase in tax on newly registered three-wheelers for private use and on construction equipment vehicles. In his speech, Thomas Isaac pointed out that the tax on three-wheelers for private use has been not revised in the las 13 years, while that of construction equipment vehicles hasn’t seen a revision in 10 years. This revision is expected to fetch the state an additional revenue of Rs 8 crore.
Meanwhile, the license fee for pollution testing stations will also be increased to Rs 15,000.
The tax on buses for educational institutions excluding that of government and aided educational institutions will be increased in proportion to the seats, announced Thomas Isaac.
In his speech, Isaac also stated that vehicles used exclusively for demonstration purposes in possession of dealers will be levied 1/15th of the tax of the vehicles of the same kind for one year. A one-time tax for 15 years will be levied from such vehicles at the time of registration.
To encourage electric vehicles, the Kerala FM said the tax on electric auto-rickshaw will be exempted for five years. This even as the existing rebate on the first five-year tax on new petrol and diesel autorickshaws will be done away with.
He also announced that the one-time tax on new electric cars, electric motor cycles, electric private service vehicles for personal use and electric three-wheelers will be limited to 5%.
The state government also expects to generate an additional revenue of Rs 225 crore by amending the Kerala Stamp Act. The state Finance Minister said the Act will be amended to value buildings other than flat as per Central Public Works Department rates.
The fair value of land will be increased by 10% by which Rs 200 crore is expected through the measure. Amendments will also be made in the Registration Act to make compulsory registration of title deeds.