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What Is Road Tax?
There is around a 10% difference between a car’s showroom price and its on-road price. This additional amount consists of the registration costs, vehicle insurance, and road tax.
Road tax, also known as Parivahan Tax or VAHAN Tax, is a key aspect of vehicle ownership in India. Under the Motor Vehicle Taxation Act 1988, Section 39, every vehicle owner in India must pay a specific fee, i.e., road tax, while purchasing a new vehicle. The government uses this fund to maintain the vast network of roads. This money is also used to integrate basic road amenities, like road signs, street lights, etc. Sometimes, the state spends this fund to provide emergency assistance and other safety measures in case of on-road mishaps.
Kerala Road Tax
The beautiful tropical state of Kerala calculates its road tax in adherence to the guidelines defined by the Kerala Motor Vehicles Taxation Act 1976. This requires every motor vehicle owner to pay a certain amount specified by the Government of Kerala. The vehicles can be either in use or kept for use.The road tax in Kerala is meant for the development and growth of the state's road infrastructure. The government can increase this amount from time to time. Upon tax payment, you will receive a Tax Licence issued by the government.The timeline of the tax payment will vary depending on the type of your vehicle. You must adhere to these deadlines to avoid additional penalties.
Who Levies/Imposes Road Tax in Kerala?
The Motor Vehicles Department of the Government of Kerala imposes road tax in Kerala. The state government will determine the amount of the tax, depending on the type of vehicle you own. Upon collecting this tax, this fund will be allocated to enhance the road infrastructure and implement local projects.
How to Calculate Road Tax in Kerala?
In order to calculate the road tax in Kerala, every vehicle owner must have a thorough understanding of it. The Kerala Motor Vehicles Taxation Act 1976 has outlined all the necessary provisions to calculate the tax. The first step of this process is to identify what type of vehicle you own. Is it a non-transport vehicle (for personal use) or a transport vehicle? Is it a two-wheeler, three-wheeler, or four-wheeler?
You will also have to keep a note of the purchase price of your vehicle and how old it is. Some other determining factors are the weight of the vehicle, its passenger capacity, and its engine power.Most of the time, the road tax in Kerala is charged annually unless it exceeds a certain amount. There are a few types of vehicles that pay a one-time road tax during the time of their registration, which usually covers a 15-year period.
If a differently-abled person owns a vehicle solely for their own conveyance purposes, their road tax will be exempted by the Government of Kerala.Check the updated road tax rates for vehicles set by the state government with segment categorisation. Take help from a trusted road tax calculator for Kerala. Enter your vehicle details, including their cost and type, to determine the appropriate road tax amount.
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The Benefits of Road Tax
The government does not charge you road tax just for the sake of it or just to draw some revenue. These funds serve specific purposes. They are designed to benefit you and your transportation experience. Here is a list of benefits that come from road taxes.
- Road Maintenance and Improvement: From fixing potholes to smoother commutes, road tax funds keep our roads safe and efficient.
- Safety Measures: Traffic signals, streetlights, and educational campaigns promoting safe driving and eco-friendly choices are all supported by road tax.
- Sustainable Transportation: Road tax helps build infrastructure for pedestrians, cyclists, and public transport, reducing pollution and congestion.
- Fair Distribution: Taxes are based on factors like vehicle size and weight, ensuring a fair system for road users.
- Enforcement and Safety: Road tax helps track vehicles and enforce traffic laws, keeping everyone safe.
- Leavy of Green Tax: Green tax shall be levied and collected in addition to the tax levied under this Act on motor vehicles.
Road tax is like revenue for the local government, as usually it is charged by the respective states only. The authorities use this fund to maintain and develop projects for the improvement of transportation systems. They take necessary community initiatives to spread knowledge and enhance transportation infrastructure for the betterment of society.
Road Tax Calculation for New Two-Wheelers in Kerala
You must follow the provisions of the Kerala Motor Vehicles Taxation Act 1976 to calculate the road tax for new two-wheelers. The first step is to note how much the purchase cost of your new vehicle was. You are only required to pay road tax if some mechanical power propels your two-wheeler. Now, you must refer to the updated taxation rates tailored for two-wheelers in Kerala.Different cost brackets, like the purchasing amount of the vehicle, categorise these rates. This approach ensures a fair and balanced taxation policy. You can use a dedicated and reliable road tax calculator for two-wheelers to deduce the taxable amount easily.
Road Tax Rates for Two-Wheelers in Kerala
Follow the table below to understand the road tax rate for your newly purchased two-wheeler. According to the Motor Vehicles Taxation Act of 1976 in Kerala, these rates apply to all new motorcycles, including the ones with propelling attachments or mechanisms. The only exception here is electronic vehicles.
| Classification of Two-wheeler | Road Tax Rates |
|---|---|
| Purchase value under Rs. 1 Lakh | 8% of the price |
| Purchase value up to Rs. 1 Lakh | 10% of the price |
| Purchase value between Rs. 1 Lakh to Rs. 2 Lakhs | 12% of the price |
| Purchase value over Rs. 2 Lakhs | 21% of the price |
Please note that these tax rates are applicable only for private vehicles and not commercially used ones.
Road Tax in Kerala for Three-Wheelers
Three-wheeler vehicles also follow the same road tax regulations. It includes cycle rickshaws and tri-cycles that have propelling mechanical power attached to them. However, this contribution is meant to raise funds for the maintenance and development of roads. The government will consider different factors when it comes to three-wheelers for fair and structured taxation.
Road Tax Rates for Three-Wheelers in Kerala
Follow the table below to understand the road tax rules for your newly bought three-wheelers.
| Classification of Three-wheeler | Quarterly Tax (if applicable) | Road Tax Rates |
|---|---|---|
| All three-wheelers other than e-Vehicles (commercial purpose) | Rs. 45 | 8% of the price (one-time payment) |
| Three-wheelers for personal use | N/A | 6% of the price |
Road Tax Calculation for New Four-Wheelers in Kerala
If you have a new four-wheeler owner in Kerala, you must be well aware of the road tax policy. Governed by the provisions of the Kerala Motor Vehicles Taxation Act 1976, the road tax rates for four-wheelers depend on several factors. The first is the purchase price of the vehicle. The next consideration is the number of occupants in the vehicle other than the driver.
As the government can change the rate from time to time, you must check the latest value to have a clear understanding of your payment. You can work out your taxable amount with the help of a dedicated road tax calculator without much hassle. Enter the necessary details of your vehicle, and you will know the accurate road tax for your vehicle.
Road Tax Rates for Four-Wheelers in Kerala
Understand the road tax value for your newly purchased four-wheeler with the following table.
| Classification of Four-wheeler | Road Tax Rates |
|---|---|
| Purchase value up to Rs. 5 Lakhs | 9% of the price |
| Purchase value between Rs. 5 Lakhs and Rs. 10 Lakhs | 11% of the price |
| Purchase value between Rs. 10 Lakhs and Rs. 15 Lakhs | 13% of the price |
| Purchase value between Rs. 15 Lakhs and Rs. 20 Lakhs | 16% of the price |
| Purchase value over Rs. 20 Lakhs | 21% of the price |
| If the engine capacity is not more than 1500cc and has a purchase value of up to Rs. 20 Lakhs | 6% of the price |
| If the engine capacity is not more than 1500cc and the purchase value is over Rs. 20 Lakhs | 20% of the price |
Please note that these tax rates are applicable only for private vehicles.
Commercial Vehicles Road Tax in Kerala
If you want to use your vehicle commercially in the state of Kerala, you must have a clear idea about the commercial vehicle road tax. The government determines this value based on several factors. For example, the first aspect is to identify what type of commercial vehicle it is. If it’s a goods carriage, the government will consider its gross weight to implement the taxable amount. If it is a passenger vehicle, it must have a permit under the Motor Vehicles Act 1988 to operate in Kerala, and it must be a contract carriage.
Next, the government checks your type of vehicle, like autorickshaws, cabs, e-rickshaws, or something else, the type of fuel they are using, and the number of passengers they are carrying. The tax is usually calculated per passenger, and the total amount aligns with the total number of passengers or seats. For stage carriages, the tax is determined per square metre.The vehicles solely used for agricultural purposes can claim their tax exemption from the Kerala Government.
This commercial vehicle tax provides a huge benefit for the maintenance and growth of the road infrastructure in Kerala. Calculate the amount by using a dedicated tax calculator and pay them on time.
Road Tax Rates for Commercial Vehicles in Kerala
The following table outlines Kerala’s road tax rates for commercial vehicles.
| Classification of Commercial Vehicle | Road Tax Rates (every 5 years) |
|---|---|
| Motorcycles or two-wheelers with mechanical power | Rs. 900 |
| Three-wheelers, including rickshaws and mechanical tricycles | Rs. 900 |
| New auto-rickshaws | Rs. 2,500 |
| Motor vehicles weighing less than 750 kg | Rs. 6,400 |
| Old cabs | Rs. 7,000 |
| Tourist cabs | Rs. 8,500 |
Road Tax for Other State Vehicles in Kerala
Suppose the vehicle is registered in some other state but has entered Kerala for further operation. In that case, they must first obtain a permit under sub-section (8) and (9) of Section 88 of the Motor Vehicles Act 1988 (Central Act 59 of 1988). These carriages must comply with the state’s regulations to pay the road tax. For out-of-state vehicles, the state also considers its gross weight for goods carriage, as well as the type and sitting capacity for passenger carriages. This provision ensures a fair deal for every vehicle operating in the state to be a part of the development of the network of roads in Kerala.
Penalty for Non-Payment of Road Taxes in Kerala
If you fail to pay the road tax in Kerala by the given timeline, you will be charged a certain penalty. This varies depending on the type of vehicle you own and how frequently you fail to pay your road tax. Hence, you must adhere to the deadlines to avoid legal consequences and ensure a seamless driving experience within the state. Meeting these payment obligations with proper understanding is a legal requirement and responsibility of all vehicle owners and operators in Kerala. This ensures the sustainable development of the state's road infrastructure.
Kerala RTO Road Tax Online Payment: A Step-By-Step Process
This step-by-step guide offers you a simplified approach to the intricacies of online transactions.
This section provides all vehicle owners with a clear and user-friendly path to fulfilling their road tax obligations.
Visit the official PARIVAHAN website of the Ministry of Road Transport and Highways.
Click on the “Online Services” dropdown and choose the “Vehicle Related Services” option.
Enter the name of your state, vehicle registration number, and RTO.
Under "Online Services," click "Pay Vehicle Tax" and validate your vehicle details by entering the last 5 digits of your chassis number.
Submit the generated OTP and check your tax details.
Using any of the available payment methods, complete the transaction, and a payment receipt will be generated.
Road Tax Online Payment in Kerala: How to Do It?
Here is a brief guide on the process of online road tax payments in Kerala.
Visit the official RTO website.
Navigate to the Online Payment section.
Provide vehicle details.
Verify the calculated amount.
Select the preferred payment method.
Complete the transaction.
Road Tax Offline Payment in Kerala: How to Do It?
If you are not comfortable with online payment options, you can always opt for traditional methods. This section will help you make a hassle-free offline road tax payment in Kerala.
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Frequently Asked Questions (FAQs)
Is road tax mandatory in Kerala?
Yes, road tax is mandatory for all vehicles plying on Kerala roads. This also applies to the vehicles registered in other states but operating in Kerala.
How is road tax calculated in Kerala?
The Kerala government calculates the road tax based on several factors. It includes the type of vehicle, its cost, its weight, and its passenger capacity. This approach is taken to offer a fair taxation policy around the state.
What happens if I do not pay road tax on time?
Non-payment of road tax within the stipulated time may result in penalties because you are legally bound to pay the specified tax. So, make sure that you always adhere to the deadlines to avoid dire consequences.
