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Old 24th January 2014, 11:00   #1
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Default Jan 2014: Road Tax hiked in Kerala

Just heard on news that the tax rates on cars would be increased in Kerala as part of the annual budget.
  • Small car road tax increased to 12%.
  • Cars with more than 1500cc classified as Luxury cars - didn't hear the tax slab but its likely to be higher.
  • Existing cars not on life tax might have tax payment every 5 years instead of the current 2 years.
  • Caravans and campers to be taxed heavily, based on sqft area.

Didn't get all points. Others, please add more information as it is available.

Last edited by zenren : 24th January 2014 at 11:02.
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Old 24th January 2014, 11:18   #2
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Default re: Jan 2014: Road Tax hiked in Kerala

upto 5 lakhs-7%
5 to 10lakhs-10%
10 to 15 lakhs-12%
above 15 lakhs-17%
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Old 24th January 2014, 11:30   #3
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Default re: Jan 2014: Road Tax hiked in Kerala

Looks like the main place for additional revenue that the finance minister saw was vehicle tax.

Quote:
Originally Posted by Mohan Mathew A View Post
upto 5 lakhs-7%
5 to 10lakhs-10%
10 to 15 lakhs-12%
above 15 lakhs-17%
Are you sure these are the rates proposed in today's budget speech?

Last edited by zenren : 24th January 2014 at 11:40.
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Old 24th January 2014, 11:41   #4
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Default re: Jan 2014: Road Tax hiked in Kerala

Quote:
Originally Posted by zenren View Post
Are you sure these are the rates proposed in today's budget speech?

This is what mathrubhumi has reported. link below

http://www.mathrubhumi.com/story.php?id=424744
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Old 24th January 2014, 11:52   #5
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Default re: Jan 2014: Road Tax hiked in Kerala

There is lot of discrepancies in the news updates regarding tax from different major Malayalam dailies. The rates quoted by Manorama and mathrubhumi varies a lot.Its better to wait for few hours.The fact that road tax is increased is true and it will be another huge blow to already slowing down automobile industry.
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Old 24th January 2014, 12:17   #6
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Default re: Jan 2014: Road Tax hiked in Kerala

As per Manorama report, the budget seems to have brought in a distinction between imported and non-imported cars:

Costing upto 5L: 7% (14% for imported)
Costing between 5-10L: 10% (18% for imported)
Costing between 10-15L: 12% (22% for imported)
Above 15L: 20% (33% for imported)

I am not sure if "imported" means CBU only or CKD also.
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Old 24th January 2014, 12:54   #7
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Default re: Jan 2014: Road Tax hiked in Kerala

Quote:
Originally Posted by StarrySky View Post
As per Manorama report, the budget seems to have brought in a distinction between imported and non-imported cars:

Costing upto 5L: 7% (14% for imported)
Costing between 5-10L: 10% (18% for imported)
Costing between 10-15L: 12% (22% for imported)
Above 15L: 20% (33% for imported)

I am not sure if "imported" means CBU only or CKD also.
Easily qualifies as one of the highest taxation rates anywhere in the country.

I hope somebody approaches the court as this very well qualifies as "unjust and exploitative" taxation with no proportionate benefit extended to the taxpayer.

Add to it the overzealous & corrupt traffic enforcement that is selective in its targeting, and a very poor road infrastructure, Kerala is prone to becoming the most unfriendly state for motorists.

Last edited by Yeldo : 24th January 2014 at 12:58.
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Old 24th January 2014, 12:59   #8
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Default re: Jan 2014: Road Tax hiked in Kerala

Quote:
Originally Posted by Yeldo View Post
I hope somebody approaches the court as this very well qualifies as "unjust and exploitative" taxation with no proportionate benefit extended to the taxpayer.
I don't know if courts can decide on the matter of taxation rates. Even if the courts agrees to admit such a plea, the govt can tell the court that since the people do not want to pay toll for the roads that are being developed, the govt is left with limited options to find money to fund road development.
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Old 24th January 2014, 12:59   #9
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Default re: Jan 2014: Road Tax hiked in Kerala

It will be in contravention of India-EU taxation laws ultimately, so I don't think this can be implemented.
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Old 24th January 2014, 13:02   #10
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Default re: Jan 2014: Road Tax hiked in Kerala

Quote:
Originally Posted by StarrySky View Post
I don't know if courts can decide on the matter of taxation rates. .
IMO the courts may interfere, if the increase in rates is unjust & punitive without extending any proportionate increment in benefits.

We have successfully contended the increase in many license fees on above grounds.

What is more perplexing that the many auto dealership groups in Kerala are related or linked to powerful minsters including the Finance Minister.

Last edited by Yeldo : 24th January 2014 at 13:09.
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Old 24th January 2014, 13:08   #11
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Default re: Jan 2014: Road Tax hiked in Kerala

Quote:
Originally Posted by Yeldo View Post
Easily qualifies as one of the highest taxation rates anywhere in the country.
Not really. Still lower than Tamil Nadu and far lower than Karnataka
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Old 24th January 2014, 13:41   #12
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Default re: Jan 2014: Road Tax hiked in Kerala

I guess this luxury tax for 1500 cc above vehicles are for new cars than for existing cars, right?

Can anybody put the current slabs also for comparison? Thanks.
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Old 24th January 2014, 13:45   #13
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Default re: Jan 2014: Road Tax hiked in Kerala

Quote:
Originally Posted by StarrySky View Post

I am not sure if "imported" means CBU only or CKD also.
"Imported" is for CBU only.

These rates are even higher than Maharashtra. This will only give rise to out of state registrations, especially for CBUs much like it is in MH.
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Old 24th January 2014, 14:03   #14
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Default re: Jan 2014: Road Tax hiked in Kerala

You can expect a mad rush to clear the showrooms of all imported luxury car makers now including Porsche, BMW, Merc, JLR, Audi, and others. Currently they are taxed at about 15% or so and the new rate is 33%.
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Old 24th January 2014, 20:20   #15
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Default Re: Jan 2014: Road Tax hiked in Kerala

Just did a comparison of the LTT rates of the southern states. (KA, AP, TN state finance budgets for 2014 may be pending).

If you look closely, the rates are more 'socialist' in Kerala.

Name:  southstatesLTtaxrates.png
Views: 16643
Size:  17.9 KB

Old rates:
http://www.team-bhp.com/forum/indian...-road-tax.html (Hike in Kerala Road Tax)

Reference:
http://www.tn.gov.in/sta/taxtables.html
http://aptransport.org/html/tax_lifetax_motor-cabs.htm
http://rto.kar.nic.in/KMVTA%202010.pdf
http://www.mathrubhumi.com/story.php?id=424744 (In Malayalam)

Last edited by Aditya : 25th January 2014 at 10:52. Reason: Rectifying post, removing picture as per request.
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