Kerala Budget 2023, presented by the State Finance Minister K N Balagopal proposed to increase the one time cess on newly registered motor vehicles levied under section 10 of Kerala Road Safety Act, 2007.
According to the budget speech, for the two wheelers it is increased from the current Rs. 50 to Rs. 100, Light Motor Vehicles from Rs. 100 to Rs. 200, Medium Motor Vehicle from Rs. 150 to Rs. 300 and Heavy Motor Vehicles from Rs. 250 to Rs. 500.
Even though the amount to be borne by the individual purchasers is very low, the government is expected to bring an additional income of Rs. 7 Crores.
The levying and collecting of cess are governed by section 10 of the Kerala Road Safety Act, 2007. Every motor vehicle used or held for use in the State shall be subject to a one-time cess for the purposes of the act, which shall be imposed and collected at the rates applicable to such vehicle in the Schedule.
No such cess may be imposed on a motor vehicle owned by a dealer or the manufacturer of such a vehicle for commercial purposes. Additionally, the government may, in its discretion and in the interest of the general public, issue an exemption from the cess required to be paid under this Act in respect of any motor vehicle or class of motor vehicles through publication in the official gazette.
The cess shall be payable by the registered owner or any person having possession or control of the motor vehicle.
In addition to the cess, there is also a fine of 10% of the unpaid cess if it is not paid within the specified time frame or in default each year.
All fees, from the petrol cess to the electricity tariff, have increased as a result of the current budget. This raise is being implemented to help with the financial crisis and to boost state revenue.
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