Thiruvananthapuram, 19 June (H.S.):The Kerala government has announced a revision in road tax rates for electric vehicles (EVs), offering tax relief for affordable models while increasing the levy on high-end vehicles as part of its efforts to promote sustainable transportation.

Presenting the State Budget in the Assembly, Chief Minister and Finance Minister V.D. Satheesan said the move was aimed at encouraging wider adoption of environment-friendly vehicles and supporting the transition to green mobility.

Under the revised tax structure, electric vehicles priced up to ₹10 lakh will attract a road tax of three per cent, down from the existing five per cent. The government has also reduced the road tax on EVs priced between ₹15 lakh and ₹20 lakh from eight per cent to five per cent.

However, there will be no change in the tax rate for electric vehicles priced between ₹10 lakh and ₹15 lakh. These vehicles will continue to attract a road tax of five per cent.

At the same time, the government has increased the tax burden on luxury electric vehicles. EVs costing more than ₹40 lakh will now attract a road tax of 15 per cent, up from the current 10 per cent. The Chief Minister clarified that all other road tax rates would remain unchanged.

The revised tax regime is expected to make electric vehicles more affordable for middle-class consumers while generating additional revenue from premium and luxury segments.

In another significant announcement, Satheesan said the government would introduce an e-Challan Amnesty Scheme to help motorists clear pending traffic violation fines. Under the scheme, vehicle owners will be allowed to settle outstanding e-challans by paying only 50 per cent of the penalty amount.

The government expects the amnesty initiative to provide relief to thousands of motorists while improving the recovery of long-pending traffic fines. The twin measures reflect the government's attempt to balance environmental goals with revenue mobilisation in the transport sector.

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Hindusthan Samachar / Arun Lakshman