Govt announced significant revisions in road tax rates for electric vehicles (EVs) in Kerala budget presented on Friday, introducing a price-based tax structure aimed at promoting the adoption of affordable EVs while increasing revenue from luxury models.Under the revised rates, electric vehicles priced up to Rs 10 lakh will attract a road tax of 3%, down from the existing 5%. Govt expects the cost reduction to make EVs more accessible to ordinary families and middle-class consumers.Electric vehicles priced between Rs 15 lakh and Rs 20 lakh will also benefit from a tax cut, with the rate being reduced from 8% to 5%.For electric vehicles costing between Rs 20 lakh and Rs 40 lakh, the existing road tax rate of 10% will remain unchanged. However, luxury electric vehicles priced above Rs 40 lakh will now attract a higher tax rate of 15%, up from the current 10%.Govt said the revised tax structure is intended to encourage the use of lower-priced electric vehicles by offering tax concessions, while generating additional revenue through higher levies on premium and luxury models.
