Hike in Kerala Road Tax

275BHP · 11th March 2013, 12:04

Guys, is there any news of a hike in road taxes this year? The salesman at Volvo Kochi recently told my friend that road taxes would increase by 1.5%. Now, I'm not sure if this is some kind of a strategy to boost their sales but it sure got me wondering if there was an impending hike.

shankar.balan · 11th March 2013, 14:04

I was in Cochin these last few days on a holiday. On this trip I had an opportunity to test drive an S60 on that Alexander Bridge road which is closed now and to spend some time with an XC60 too, at the Dealer Workshop at Willingdon Island. The Service Engineer there told me the same thing - that the road taxes in Kerala are going up shortly.

Quote:

Originally Posted by 275BHP

Guys, is there any news of a hike in road taxes this year? The salesman at Volvo Kochi recently told my friend that road taxes would increase by 1.5%. Now, I'm not sure if this is some kind of a strategy to boost their sales but it sure got me wondering if there was an impending hike.

aajohn · 11th March 2013, 14:38

Quote:

Originally Posted by 275BHP

Guys, is there any news of a hike in road taxes this year? The salesman at Volvo Kochi recently told my friend that road taxes would increase by 1.5%. Now, I'm not sure if this is some kind of a strategy to boost their sales but it sure got me wondering if there was an impending hike.

I too have heard the same thing but thought of it as a ploy for pushing sales before financial year closure.I guess we will have to wait till March 15 when the Kerala budget is announced.

Was planning to buy the XUV sometime in June/July. Keeping my fingers crossed!

aajohn · 15th March 2013, 20:57

does anyone have any update on this? I dont think there is any increase proposed.

StarrySky · 16th March 2013, 00:07

I read that there is an increase of 1% proposed in some duty and not road tax.

skm1967 · 16th March 2013, 01:07

VAT has been increased from 13.5% to 14.5%. There is no increase in road tax which stays at 6% for veh upto 5L, 8% upto 10L and 10% for vehicles costing more than 10L.

mroptimist · 23rd March 2013, 20:16

Quote:

Originally Posted by skm1967

VAT has been increased from 13.5% to 14.5%. There is no increase in road tax which stays at 6% for veh upto 5L, 8% upto 10L and 10% for vehicles costing more than 10L.

Hi skm1967, a question for you.
What is the impact of this increase in VAT from 13.5% to 14.5% on the OTR price of Toyota Fortuner? Is VAT collected on Cars coming from outside Kerala or is it restricted only to luxury cars which are imported from outside India. If VAT is collected on every car which comes from outside Kerala then very car's price should go up (Because no car is assembled or manufactured in Kerala).
On the dealer's website (Amana Toyota) they haven't revised the prices after 1st March. Or is it possible that this VAT will come into effect from April 1st?
Would really appreciate if somebody clarifies. Thank You.

ARG · 23rd March 2013, 22:04

I did not hear anything about a hike in the road-taxes, but VAT is definitely going up by 1%, come 1 April.

I'm making a part-payment next week on a new car, to record sale before Apr 1 - as per dealer advice.

aajohn · 24th March 2013, 07:46

I had taken a quote from tvs for the xuv and the bill break up was ex showroom price, road tax and insurance. There was no mention of VAT. Not sure if its applicable to luxury cars.

skm1967 · 24th March 2013, 12:28

[quote=mroptimist;3074815]Hi skm1967, a question for you.
What is the impact of this increase in VAT from 13.5% to 14.5% on the OTR price of Toyota Fortuner? Is VAT collected on Cars coming from outside Kerala or is it restricted only to luxury cars which are imported from outside India. If VAT is collected on every car which comes from outside Kerala then very car's price should go up (Because no car is assembled or manufactured in Kerala).

Dear mroptimist,

With the increase in VAT from 13.5% to 14.5% the OTR price of Toyota Fortuner has gone up by approx Rs. 22000/-. VAT is applicable on any car sold in Kerala. The increase in VAT is applicable not only on cars but a large no. of goods.

There are various schedules in VAT Act and rates are different for different goods. Like for goods in schedules 1 and 4 in Kerala VAT act there is no VAT. There are different rates for other schedules ranging from 5 % to 14.5 %. Items such as refrigerators, airconditioners, cars etc, considered luxury items, attract 14.5% VAT in Kerala.

The revised VAT rates are probably applicable from 01 Apr 13.

skm1967 · 24th March 2013, 12:33

Quote:

Originally Posted by aajohn

I had taken a quote from tvs for the xuv and the bill break up was ex showroom price, road tax and insurance. There was no mention of VAT. Not sure if its applicable to luxury cars.

Dear aajohn,

The ex-showroom price includes VAT too. You may ask for the break up of ex-showroom price to get all details and find what percentage VAT has been applied. VAT is same for all cars, luxury or not, at 14.5 % in Kerala.

agbenny · 25th March 2013, 12:23

I happen to travel to Cochin last week and found Tamilnadu-Palakkad-Trissur stretch has been totally ignored,and some areas 4 lane-ing seems to be totally abandoned. The road between Trissur and Palkkad is a shame. It took 6 hrs to reach Cochin.

Also, already 4 laned- stretch between Trissur and Cochin is not sufficient at all due to narrow stretches, lack of bridges and heavy traffic.

I thought I would ask the friends from Kerala, as I know it was started during 2007-2008 and yet to improvement. I see the road tax is being revised too. :-(

supremeBaleno · 29th April 2014, 13:27

Does anyone have a link to the current road-tax rates for bikes in Kerala ? The Kerala MVD has a website, but it is too cluttered to be able to find the info needed.

Asking because there had been hints from dealers about tax rates going up in Kerala, but no idea if it actually increased from April 2014.
Today I looked up the prices for the CBR 250R on the Honda website and found the on-road price to be around 5K more than what I had seen there a month ago.

binaiks · 29th April 2014, 13:56

Quote:

Originally Posted by supremeBaleno

Does anyone have a link to the current road-tax rates for bikes in Kerala ? The Kerala MVD has a website, but it is too cluttered to be able to find the info needed.

Yes. Tax rates have changed. Please see this file for more details. LTT rates are towards the end of the document.

4x4addict · 30th April 2014, 11:25

Frankly Kerala is one state where the congress is more marxist than the Communist !!. It is an auto enthusiasts worst nightmare with that over zealuous RTO commissioner and no politician with courage to do anything in the UDF. You get fined for alloys, different color of car from what is on the book, auxilliary lights etc....

11th March 2013, 12:04	#16
275BHP BHPian Join Date: Aug 2012 Location: Cochin, B'lore Posts: 125 Thanked: 110 Times	Guys, is there any news of a hike in road taxes this year? The salesman at Volvo Kochi recently told my friend that road taxes would increase by 1.5%. Now, I'm not sure if this is some kind of a strategy to boost their sales but it sure got me wondering if there was an impending hike.
	() Thanks

15th March 2013, 20:57	#19
aajohn BHPian Join Date: Mar 2013 Location: KL-CHN-BLR Posts: 224 Thanked: 89 Times	does anyone have any update on this? I dont think there is any increase proposed.
	() Thanks

16th March 2013, 00:07	#20
StarrySky Senior - BHPian Join Date: Apr 2010 Location: EU - Nordic Posts: 2,070 Thanked: 3,098 Times	I read that there is an increase of 1% proposed in some duty and not road tax.
	() Thanks

16th March 2013, 01:07	#21
skm1967 BHPian Join Date: Sep 2012 Location: Trivandrum Posts: 36 Thanked: 25 Times	Re: Hike in Kerala Road Tax VAT has been increased from 13.5% to 14.5%. There is no increase in road tax which stays at 6% for veh upto 5L, 8% upto 10L and 10% for vehicles costing more than 10L.
	(2) Thanks

23rd March 2013, 22:04	#23
ARG BHPian Join Date: Jan 2009 Location: KL 07/KL 01 Posts: 51 Thanked: 16 Times	Re: Hike in Kerala Road Tax I did not hear anything about a hike in the road-taxes, but VAT is definitely going up by 1%, come 1 April. I'm making a part-payment next week on a new car, to record sale before Apr 1 - as per dealer advice.
	() Thanks

24th March 2013, 07:46	#24
aajohn BHPian Join Date: Mar 2013 Location: KL-CHN-BLR Posts: 224 Thanked: 89 Times	I had taken a quote from tvs for the xuv and the bill break up was ex showroom price, road tax and insurance. There was no mention of VAT. Not sure if its applicable to luxury cars.
	() Thanks

24th March 2013, 12:28	#25
skm1967 BHPian Join Date: Sep 2012 Location: Trivandrum Posts: 36 Thanked: 25 Times	Re: Hike in Kerala Road Tax [quote=mroptimist;3074815]Hi skm1967, a question for you. What is the impact of this increase in VAT from 13.5% to 14.5% on the OTR price of Toyota Fortuner? Is VAT collected on Cars coming from outside Kerala or is it restricted only to luxury cars which are imported from outside India. If VAT is collected on every car which comes from outside Kerala then very car's price should go up (Because no car is assembled or manufactured in Kerala). Dear mroptimist, With the increase in VAT from 13.5% to 14.5% the OTR price of Toyota Fortuner has gone up by approx Rs. 22000/-. VAT is applicable on any car sold in Kerala. The increase in VAT is applicable not only on cars but a large no. of goods. There are various schedules in VAT Act and rates are different for different goods. Like for goods in schedules 1 and 4 in Kerala VAT act there is no VAT. There are different rates for other schedules ranging from 5 % to 14.5 %. Items such as refrigerators, airconditioners, cars etc, considered luxury items, attract 14.5% VAT in Kerala. The revised VAT rates are probably applicable from 01 Apr 13.
	(2) Thanks

25th March 2013, 12:23	#27
agbenny BANNED Join Date: Sep 2006 Location: TN38 Posts: 1,082 Thanked: 293 Times	Re: Hike in Kerala Road Tax I happen to travel to Cochin last week and found Tamilnadu-Palakkad-Trissur stretch has been totally ignored,and some areas 4 lane-ing seems to be totally abandoned. The road between Trissur and Palkkad is a shame. It took 6 hrs to reach Cochin. Also, already 4 laned- stretch between Trissur and Cochin is not sufficient at all due to narrow stretches, lack of bridges and heavy traffic. I thought I would ask the friends from Kerala, as I know it was started during 2007-2008 and yet to improvement. I see the road tax is being revised too. :-(
	() Thanks

29th April 2014, 13:27	#28
supremeBaleno Senior - BHPian Join Date: Dec 2005 Location: Chennai / Kochi Posts: 5,656 Thanked: 2,814 Times View My Garage	Re: Hike in Kerala Road Tax Does anyone have a link to the current road-tax rates for bikes in Kerala ? The Kerala MVD has a website, but it is too cluttered to be able to find the info needed. Asking because there had been hints from dealers about tax rates going up in Kerala, but no idea if it actually increased from April 2014. Today I looked up the prices for the CBR 250R on the Honda website and found the on-road price to be around 5K more than what I had seen there a month ago.
	() Thanks

30th April 2014, 11:25	#30
4x4addict Distinguished - BHPian Join Date: Nov 2007 Location: Chennai Posts: 4,491 Thanked: 4,567 Times View My Garage	Re: Hike in Kerala Road Tax Frankly Kerala is one state where the congress is more marxist than the Communist !!. It is an auto enthusiasts worst nightmare with that over zealuous RTO commissioner and no politician with courage to do anything in the UDF. You get fined for alloys, different color of car from what is on the book, auxilliary lights etc....
	(1) Thanks