The Kerala government today increased the lump sum tax on a private EV worth more than Rs 15 lakh to take advantage of the growing sales of electric vehicles (EVs) in the state. People of the industry believe that this move of the government may affect the rapidly growing EV sales and penetration in the state.
The government has increased the outright road tax on electric vehicles worth more than Rs 15 lakh to 8 percent of the price of the vehicle. So far 5 percent road tax on it Used to think.
Similarly, 10 percent tax will be levied on EVs priced at Rs 20 lakh and above. The government has also levied 10 per cent tax on electric cars with facility to rent battery, irrespective of its price. Kerala is at the second position in terms of rapid adoption of Ile Castric vehicles in the country and only Maharashtra is only Maharashtra. Kerala Finance Minister KN Balagopal made this announcement in the budget presented in the Legislative Assembly today. The government has also increased land tax by 50 percent. With this, the state is estimated to have an additional income of Rs 100 crore.
The state budget has proposed a 50 % increase in taxes for motorcycles, three -wheelers and other private vehicles over 15 years old to curb the use of old vehicles.
A source in JSW MG Motor India said that her model ‘Battery Edge a Service’ for Windsor does not come under the purview of the definition of renting the battery. Through this increase in tax, the state government is expected to get additional revenue of Rs 30 crore.
The leader of an industry organization, on the condition of anonymity, said, “It is not a positive step at a time when the whole country is trying to increase EV’s reach and the people of Kerala are at the forefront of it.”
In the budget, the state government is estimated to get additional revenue of Rs 366 crore from measures taken on the tax front. This is the last full budget of the state government. In this, revenue expenditure of Rs 1.79 lakh crore and revenue of Rs 1.52 lakh crore has been estimated. Thus, this will give a revenue deficit of Rs 27,125 crore to the state.
Regarding this initiative to impose tax on Elle Castric vehicles, the industry says that this is a move to move backwards. A report by BNP Pariba shows that in Kerala
The penetration of the Ele -Castric car is growing at a rate of 6.4 per cent and is at the forefront of the matter. This figure is 6 percent in Delhi and West Bengal.
In terms of total penetration of electric passenger vehicles, Kerala was at the forefront of 5.2 per cent in FY 2024. In the case of two -wheeler, EV penetration in Kerala is increasing at a rate of 13.5 per cent. The figure was recorded at 11.5 per cent in Karnataka and 10.1 per cent in Maharashtra.
Another source in the industry said, ‘Kerala is moving forward in the development of EV mechanisms. In such a situation, I do not understand what is the reasoning behind this initiative of the government.