Kerala shocks electric vehicle buyers, raises taxes up to 10% based on cost

While almost all states are rolling out sops for electric vehicles (EVs) to attract customers and original equipment manufacturers, the government of Kerala has increased the road tax on private four-wheeler EVs up to 10 per cent, from 5 per cent currently, depending on their cost. In another jolt to the EV segment, the government has also introduced a 10 per cent tax on electric cars with a battery renting facility. The announcements were made by state finance minister K N Balagopal as part of his Kerala Budget for the 2025-26 financial year, announced on Friday, the final budget of Pinarayi Vijayan's second tenure. In yet another shock to the common man, the Budget increased land tax by 50 per cent, which is expected to bring an additional income of Rs 100 crore to the state. The Budget also proposed a 50 per cent hike in taxes for motorcycles, three-wheelers, and other private vehicles older than 15 years, in a move to regulate the use of older vehicles.