In a move aimed at boosting the tourism sector and enhancing passenger comfort, Kerala Finance Minister K N Balagopal announced a significant reduction in quarterly road tax for push back seat vehicles during the presentation of the Kerala State Budget 2025.
The proposal also includes a simplification of the tax structure for contract carriages registered within the state.
1. Unified Tax Rates for Push Back Seats:
– The existing differential tax rates for push back seats, ordinary seats, and sleeper seats have been abolished. This decision was taken due to the limitations of the Vahan software, which does not support multiple tax rates for different seat categories.
– The new system introduces a unified tax rate for all seat types, simplifying the process for taxpayers.
The Future of Tax and Finance: Upskill with Us
2. Revised Quarterly Tax Rates:
– For vehicles with 6 to 12 seats: The quarterly tax will be standardized at ₹350 per seat, replacing the previous rates of ₹280 for ordinary seats, ₹450 for push back seats, and ₹900 for sleeper seats.
– For vehicles with 13 to 20 seats: The tax will be set at ₹600 per seat, replacing the earlier rates of ₹480 for ordinary seats, ₹680 for push back seats, and ₹1,350 for sleeper seats.
– For vehicles with 20 or more seats: The tax will be fixed at ₹900 per seat, replacing the previous rates of ₹680 for ordinary seats, ₹900 for push back seats, and ₹1,800 for sleeper seats.
– For heavy passenger sleeper berth buses: The quarterly tax will be reduced from ₹1,800 to ₹1,500 per sleeper berth.
3. Revenue Impact:
– The current annual revenue from contract carriages is ₹292 crore. With the proposed tax simplification, the state is expected to earn an additional ₹15 crore annually.
The Future of Tax and Finance: Upskill with Us
The Finance Minister outlined that the decision to reduce and simplify road tax is aimed at encouraging the tourism sector and improving the overall travel experience for passengers. By making the tax structure more straightforward, the government hopes to reduce the compliance burden on vehicle owners and operators, thereby fostering growth in the transport and tourism industries.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
