Kerala government announces one-time settlement for motor vehicle tax arrears
Vehicle owners can pay a reduced percentage of outstanding taxes and fines to clear arrears by March 31, 2027.
The Kerala State government has introduced a one-time settlement scheme to help vehicle owners clear motor vehicle tax arrears, according to The Hindu.
Owners of non-transport vehicles must pay 40 per cent of their total tax arrears, including interest and fines, accumulated over four years ending March 31, 2026. For transport vehicles, the required payment is 30 per cent of the same total.
The scheme is available to those with tax arrears covering at least four years up to March 31, 2026. Participants will receive exemptions from the Green Tax, Motor Transport Workers’ Welfare Fund contributions, and certain registration certificate production fees.
Individuals undergoing revenue recovery proceedings may also participate. Such recovery actions will end once the outstanding tax and applicable collection charges are paid.
The Transport Minister's office stated that future tax liabilities will be waived for vehicles that have been scrapped, stolen, destroyed, or are unusable. The concession depends on document verification by authorities.
Eligible owners must submit an application with the required documents before the deadline of March 31, 2027.