Kerala Road Tax – The Great Escort of 2024

Road taxes are common taxes that are levied on roads to ensure that every aspect related to roads has enough funds to cover all the costs of development and maintenance. 

Road tax in India varies from state to state and out of all the states in India, Kerala has its own way of levying and collecting road tax. 

This blog post will help you understand everything about Kerala road tax including its importance, classification, rates, exemptions, penalties, and the process of online payment.

What is the Introduction of Kerala Road Tax?

Kerala road tax is levied as per the provisions laid down in the Kerala Motor Vehicles Taxation Act, 1976, with regular amendments made due to the changing trend in transport facility demand and economic conditions. 

Being a state tax, the primary function of this tax is to generate revenue, which is required for the construction of new roads, repair of bad or poorly lit roads, and improvement of road conditions by installing street lights and other facilities for smooth and safe transport inside the state. 

This tax has to be paid by every vehicle owner who owns a two-wheeler, four-wheeler, or any commercial vehicle or electric vehicle.

The second is the road tax, which is being levied in the state of Kerala and is usually paid once and only when one registers his vehicle. But there are provisions for timely payment, especially with regard to commercial vehicles. 

The taxation policy also varies based on certain parameters including the type, weight, and size of the car, the engine size, or the age of the car.

Why Is Road Tax Important?

Road Tax is Vital Reasons:

• Infrastructure Development: The revenue collected through road taxes funds the construction and maintenance of roads, bridges, highways, and other related infrastructure.
• Safety Measures: Well-maintained roads reduce the chances of accidents, thereby promoting safe travel.
• Environmental Impact: Kerala has been focusing on reducing vehicular pollution by encouraging electric and hybrid vehicles. Road tax policies often reflect these environmental goals, with incentives for green vehicles.
• Regulation and Control: Road tax acts as a regulatory measure to ensure that vehicle owners adhere to rules, including registration and fitness certification.

Who Is Liable to Pay Kerala Road Tax?

Kerala Road tax is applicable in various aspects which we have explained to you in great detail below:

• Private Vehicle Owners: Owners of cars like two-wheelers, private cars, and SUVs have to pay Kerala road tax along with other charges when they register their cars.
• Commercial Vehicle Owners: Commercial vehicles like trucks, buses, taxis, and other types of vehicles sometimes have to pay Kerala road tax. The rates for these vehicles are usually higher, as these vehicles are mostly used for commercial purposes and have a greater impact on the roads.
• Electric and Hybrid Vehicle Owners: Kerala has some exceptions or lower tariffs for electric automobiles as it has adopted eco-friendly policies.

What is the Kerala Road Tax Calculation?

The calculation of Kerala road tax depends on several factors. These include the vehicle type (two-wheeler, four-wheeler, or commercial), the vehicle’s age, engine capacity, and fuel type. The tax rate is designed to reflect both the environmental and infrastructural impact of the vehicle.

Vehicle Type

• Four-wheelers are charged higher Kerala road tax than two-wheelers on the roads.
• While commercial vehicles are taxed more than their counterparts, the reason could be that they use the roads more than their non-commercial counterparts.

Vehicle Age

If a car is old, the tax rate on it will be lower than that of a new car. New vehicles are taxed at other rates, possibly higher according to their value and possibly their mileage.

Fuel Type

Diesel vehicles may be taxed higher due to the damage they cause to the environment, while electric vehicles on the other hand may be exempted from taxes or taxed lesser.

What are the Kerala Tax Road Tax Rates and Slabs?

Here’s are all the kerala road tax rates and slabs:

Two-Wheelers

Three-Wheelers (Non-Transport)

Four-Wheelers (Private Cars)

Commercial Vehicles (Transport)

Electric Vehicles (Private)

What are the Exemptions and Concessions of Kerala Road Tax?

Kerala offers several incentives and discounts for the use of eco-friendly vehicles or for certain sectors of the economy.

Electric and Hybrid Vehicles

Tax-free is one of the most attractive bonuses, and such vehicles are exempt from tax charges, especially for the first years. 

The state of Kerala is reducing the road tax it collects from EVs as part of its efforts to support the use of clean energy. Under certain circumstances, it may be possible for owners of electric cars to pay nothing towards Kerala road tax for the initial years.

Vintage and Antique Vehicles

Vehicles from before the 1940s which are limited-use vehicles and are generally over 50 years old attract lower Kerala road tax rates as a result of their age and use.

Agricultural and Special Purpose Vehicles

Plants used for agricultural purposes may get Kerala road tax concessions or exemptions in the case of a vehicle such as a tractor. These RVs are largely used off-road; therefore, they do not put much pressure on public roads.

What are the Penalties for Non-Payment of Kerala Road Tax?

It is very important to pay Kerala road tax on time as otherwise, one may have to pay hefty fines. Vehicle owners may have to face the following:

• Penalties: If road tax is not paid, the cost of the penalty is usually much higher than the amount of tax payable.
• Vehicle Impounding: For continuous failure to pay Kerala road tax, the car may be impounded by the authorities from time to time.
• Legal Action: Repeated violations of Kerala road tax rules may lead to legal action against the offender by the state transport authorities.

How to Pay Kerala Road Tax Payment?

Now you can pay Kerala Road Tax through both online and offline modes, which will save a lot of your time, so we have explained both these steps very clearly below:

Kerala Road Tax Payment Online

Yes, you will be able to pay Kerala road tax through the official website of Kerala Motor Vehicles Department.

Steps to Pay Road Tax Online:

Visit the MVD Kerala Website:

• Go to the official website: https://mvd.kerala.gov.in. 

Select ‘Vehicle Tax’ or ‘e-Payment’ Option:

• Search and press on an ‘e-Payment’ or ‘Vehicle Tax’ tab that is situated on the home page.

Enter Vehicle Details:

• Enter the driver’s license number and other required details like the chassis number or engine number of your vehicle.

Verify Vehicle Information:

• It will then display the details of your car and the tax you need to pay. When this happens, make sure you know the facts before proceeding.

Choose Payment Method:

• Choose your preferred payment method from the available options like debit card, credit card, net banking, etc.

Complete the Payment:

• Below the entered data, there is information about the payment details and once you fill in this information, you have to complete the purchase.

Download Receipt:

• Once the payment is completed, download the tax payment receipt for future use or as evidence if required.

Kerala Road Tax Payment Offline 

You can also pay the Kerala road tax offline by visiting the nearest Regional Transport Office (RTO). Follow these steps:

Steps to Pay Road Tax Offline:

Visit the Nearest RTO:

• Visit the nearest KRE RTO or refer to the following RTO offices in Kerala:

Collect the Application Form:

• Ask for the road tax payment form from the RTO counter or it can also be downloaded from the official MVD site.

Fill in the Details:

• To fill out the form, make sure to fill in your vehicle’s registration number, engine number, and other important details.

Submit the Form and Documents:

• Attach a copy of the duly filled form along with the Vehicle Registration Certificate or RC, as it is known, or any other required document, such as a pollution certificate, if required.

Make the Payment:

• Submit the road tax in the form of cash, cheque, or demand draft as instructed by the RTO officer, which will state the amount to be paid.

Collect the Receipt:

• When the tax is paid you should be able to get the tax payment receipt from the RTO office.

Important Note:

Whether making the payment online or in person, always keep a copy of the paid road tax receipt for any future legal investigation or further queries.

What is the List of RTOs in Kerala?

Here is a list of Regional Transport Offices (RTOs) in Kerala along with their respective RTO codes:

Thiruvananthapuram District

Kollam District

Pathanamthitta District

Alappuzha District

Kottayam District

Idukki District

Ernakulam District

Thrissur District

Palakkad District

Malappuram District

Kozhikode District

Wayanad District

Kannur District

Kasaragod District

These RTO offices handle vehicle registration, road tax payments, issuing driving licenses, and other vehicle-related services in Kerala.

What is the Refund of Kerala Road Tax?

If a vehicle is sold or transferred to another state, the owner may be eligible for a road tax refund. The refund amount is calculated based on the remaining validity period of the road tax.

Procedure for Vehicle Transfer to Another State

• Obtain a No Objection Certificate (NOC): From the Kerala RTO, you’ll need an NOC to transfer the vehicle to another state.
• Apply for Road Tax Refund: Submit the NOC and vehicle registration documents to the Kerala RTO along with a refund application.

What is the Comparison with Other States’ Road Taxes?

Road taxes are other taxes levied by the state government and vary from state to state depending on the economic growth of that state, the number of vehicles in that particular state, and the environmental objectives of that state. 

Such information will enable vehicle owners and potential buyers to know the road tax rate of Kerala in comparison to other states.

Kerala vs. Tamil Nadu

Tamil Nadu, being a neighboring state, shares some similarities with Kerala in terms of road tax policies, but there are notable differences:

• Taxation Rate: It is often the case that Tamil Nadu levies lower road tax on private four-wheelers than Kerala. This difference can be attributed to the fact that Kerala has focused more on building infrastructure in the last few years.
• Electric Vehicle (EV) Concessions: Massachusetts has instituted a rebate for the purchase of electric vehicles while Oklahoma has promoted a charger rebate program. Nevertheless, Kerala has more beneficial rebates for EVs and hence reflects the government’s agenda for green transportation in the state.

Kerala vs. Karnataka

Karnataka, which stands out with a strong IT base, has a higher number of private vehicles than Kerala, leading to a complex road tax structure.

• Lifetime Tax: Both states allow a lifetime tax option; however, Karnataka’s rates for higher category vehicles: above ₹ 10 lakh appear to be higher than Kerala’s.
• Commercial Vehicles: Due to Karnataka’s higher reliance on freight transport, the state levies higher taxes on commercial vehicles. Tax charges on commercial vehicles are still equally high on the yellow metal, though slightly lower than in Kerala.

Kerala vs. Maharashtra

Maharashtra has one of the highest road tax rates in the country, particularly for luxury cars. Compared to Kerala:

• Private Vehicles: For cars, the road tax for private cars in Kerala is moderate compared to Maharashtra for almost all categories and is very moderate for cars costing above ₹10 lakh.
• Exemptions: Currently, Kerala has a more liberal road tax approach for EVs, while still, Maharashtra still continues to develop incentive factors for EVs.

How Vehicle Age and Price Affect Road Tax in Kerala?

The vehicle age and price play a crucial role in determining the road tax in Kerala:

Price of the Vehicle: Road tax is usually levied in proportion to the ‘ex-showroom price of the vehicle’. Luxury cars usually come at a higher price and as a result, are classified under a higher road tax bracket.

For example, if the price range is below ₹5 lakh then the tax rate could be 6%. If the range is above ₹20 lakh then the tax rate would be 20%.

Vehicle Age:

• Road tax for new vehicles is relatively high and is used as a one-time fee for private cars.
• Depreciation for older vehicles is one aspect of the system that affects the road tax amount. As a result, the level of taxation increases based on the age of the car, i.e. the younger the age, the lower the taxation.
• Vehicles older than a few years are also taxed less in Kerala, as they depreciate in value.

What are the Important Rules and Regulations Regarding Road Tax in Kerala?

Some important rules and regulations for paying road tax in Kerala include:

• Mandatory Payment: it’s an obligation that every vehicle owner has to pay at the time of registration of a vehicle in Kerala whether it is a new or a second-hand car.
• One-Time Payment for Personal Vehicles: Motorized vehicles such as motorbikes and cars are mainly charged a one-off road tax fee throughout the lifetime of the vehicle.
• Annual Tax for Commercial Vehicles: Regarding commercial vehicles like taxis, buses, and trucks, road tax is paid every year or on a quarter basis from the type of vehicle.
• Electric Vehicles: To encourage users to embrace green transport, the government of Kerala applies low road taxes to electric cars, which are generally 5% of the cost of the car.
• Late Payment Penalties: Delays in payment of road tax result in increased penalties and fines. It is advisable to make payment of tax before the deadline set in order to avoid accruing more charges.
• Transfer of Ownership: Ownership of vehicles also involves paying road tax and if the new owner of a certain car has not been reminded that he needs to pay the road tax or has not paid at all then he or she is held responsible for the amount that needs to be paid.
• Out-of-State Vehicles: Vehicles brought into Kerala from other states for more than 12 months need to re-register and pay the Kerala road tax as per state laws.

How to Check Kerala Road Tax Payment Status Online?

You can very easily know what is the status of the road tax payment given by you, it means whether your payment is delayed or is in process, so we have explained it in great detail, you are given the details below:

Visit the Kerala MVD Website: Go to https://mvd.kerala.gov.in. 

Navigate to ‘Check Vehicle Tax Payment Status’:

• Look for the ‘Tax Payment’ or ‘Vehicle Services’ section on the website.

Enter Vehicle Details:

• Input your vehicle registration number, and you may need to provide additional details such as chassis number or engine number.

View Payment Status:

• Once you submit the details, you’ll be able to see the payment status of the road tax, including whether it’s paid, due, or pending.

Download Payment Receipt:

• If your road tax has been paid, you can download the receipt for your records.

What are the Common Mistakes to Avoid When Paying Kerala Road Tax?

Here are some common mistakes vehicle owners should avoid when paying road tax in Kerala:

• Missing Deadlines: One of the biggest mistakes is not paying the road tax challan on time, which can lead to penalties and fines. You should always remember the due date and ensure that you pay on time.
• Wrong Payment Details: While making the payment online or offline please verify your vehicle details, especially the registration number/chassis number. Any mistake in this can slow down the process or even give wrong results.
• Not Saving the Payment Receipt: One thing that most people forget is to save or download the tax payment receipt. This document is used as proof of payment and for all future events related to the payment.
• Ignoring Vehicle Modifications: If the vehicle owner has made any changes to the vehicle that leads to a change in the vehicle category, for example, the number of seats in the vehicle, or if the vehicle has been converted to a commercial vehicle, the vehicle owner must update the RTO and ensure that the required taxes to be paid are paid accordingly.
• Not Re-Registering Out-of-State Vehicles: You must be using a car that has been registered in another state for more than a year in the state to be required to pay Kerala road tax. Failure to do so leads to other legal penalties such as fines.
• Unaware of Road Tax Rates: Most owners are unaware of the correct tax slab based on the type of vehicle; two-wheeler, four-wheeler, or commercial vehicle. You must be very careful about the rates involved so that you do not end up under-charging or over-charging.

What is the Impact of Kerala Road Tax on the Economy?

The revenue generated from road taxes in Kerala significantly impacts the state’s economy. Here’s how:

Infrastructure Development

The collection of revenue from road taxes is very essential for road construction, maintenance, and other infrastructure development in the state of Kerala. 

Due to the high population density and geographically inconvenient terrain, regular maintenance of roads is essential for the growth of the economy, especially for the tourism sector which is central to the growth of Kerala’s economy.

Employment Generation

Well-connected roads promote economic growth, especially for rural areas that require investment. Better roads result in increased market access for products, leading to the growth of local industries and thus employment. 

In addition, infrastructure projects funded by road taxes also provide employment opportunities for construction, maintenance, and other related services.

Promotion of Environment-Friendly Vehicles

At present, the road tax system in the state of Kerala, especially the system with incentives for electric vehicles, can certainly reduce the carbon footprint. Low tax rates for such automobiles force users to adopt cleaner models by abandoning conventional petrol or diesel vehicles; in the process, they support the creation of new jobs in the green electric mobility industry.

Indirect Economic Benefits

A well-connected transport system results in improved travel time, mileage, and general utilization of transport modes. This reduces costs in terms of logistics, which means increased trade and commerce within that state. 

This is especially true in the case of the tourism industry which is one of the most important economic activities in the Kerala region, smooth surface roads improve tourism activities by enabling tourists to access many beautiful scenery in the region.

What is the Future Aspect of Kerala Road Tax?

The future of Kerala road tax is likely to be shaped by multiple factors, including environmental concerns, technological advancements, and shifts in transportation patterns.

Green Initiatives and EV Policies

Being one of the most sustainable states in India, Kerala is also expected to provide tax exemption to electric cars. This ambition to move towards a greener transport system in the next 8 years may lead to a reduction in Kerala road tax on EVs or even removal of it altogether. Also, tax policies for the first use of hybrid automobiles and other fuels may also be positive next year.

Digitalization of Tax Collection 

The progress of taxation as well as vehicle registration in society is likely to be towards digitalization. The State Transport Department of Kerala is pursuing IT modernization, which has helped vehicle taxpayers pay taxes online and avail of vehicle services online easily. 

This change will also save time, which means that the bureaucratic process related to taxation will be reduced and transparency in tax collection will also increase.

Smart Transports System

The use of smart technologies for transportation and communication is gradually being implemented in Kerala, such as intelligent traffic management systems electronic toll collection, etc. 

Subsequent road tax policies may be in line with these reforms; Dynamic taxes related to usage, emissions, and even congestion charges could be implemented.

What is the Contact Information of MVD’s Head Office in Kerala?

Here’s the contact information of Kerala Road Tax:

In Conclusion

Kerala road tax can be said to be very fundamental in the transportation sector of this region. It contributes to the financing of many important projects, improves the field of road safety, and promotes the green goals of the state. 

In the context of the current study, road tax policies are used to meet the infrastructure needs and environmental problems that exist in the state of Kerala, but the tax structure for road use is gradually changing to support environmentally friendly strategies such as the use of electric cars. 

Brief information about the Kerala road tax system is relevant for vehicle owners, whether they own vehicles for personal use or for business purposes. 

The government has attempted to make taxation processes efficient and simple in the past, encouraging the use of environmentally friendly vehicles and expanding road infrastructure for citizens are some of the good initiatives that have been taken by the state.

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