Amendment status not verified — confirm the current text below against the official source.
(1) Subject to the provisions of this Act, on and from the date of commencement of this Act, a tax shall be levied on every motor vehicle used or kept for use in the State, at the rate specified for such vehicle in the Schedule: Provided that no such tax shall be levied on a motor vehicle kept by a dealer in, or a manufacturer of, such vehicle, for the purpose of trade and used under the authorization of a trade certificate granted by the registering authority; [Provided further that in respect of a new motor vehicle of any of the classes specified in items 1, 2, 6, 7(i)(b), 7(i)(c), 10(iii) and 11(i) of the Schedule, there shall be levied, from the date of purchase of the vehicle, one time tax at the rate specified in Annexure-I, at the time of first registration of the vehicle and thereafter tax shall be levied at the time of renewal of registration of such vehicle or on the expiry of the life time tax already paid at the rate specified in the Schedule 2B[as per fifth proviso] to sub-section (1) of Section 4.] 1A[x x x x] [Provided also that in respect of old motor cycles specified in item (1), old three wheelers specified in item (2) and old motor cars specified in item 11(i) of the Schedule, there shall be levied a tax in advance for a period of five years after the expiry of the period in respect of which 2C[tax has been paid, at the rate] specified in Annexure-II and for new goods carriages specified in item (3)(i)(a) to (3)(i)(e) and (3)(ii)(a) to (3)(ii)(e), new Autorickshaws specified in item 7(i)(a) 2D[and 7(i)(aa) and new e-rickshaws specified in item 7(i)(ab)], there shall be levied a tax in advance for a period of five years at the rate specified in Annexure-II at the time of first registration of the vehicle and thereafter tax shall be levied for five years or for one year at the rate specified in the 2E[eighth proviso] to sub-section (1) of Section 4.] 1B[Provided also that in respect of new Stage Carriages registered or assigned a new registration mark or altered from any category other than Stage Carriage, there shall be levied a tax based on the floor area of the vehicle at the rate specified in item (iv) of serial number 7 of the Schedule.] (2) The Government may from time to time by notification in the Gazette, increase the rate of tax specified in the Schedule: Provided that such increase shall not in the aggregate exceed fifty per cent of such rate. (3) The registered owner of, or any person having possession or control of a motor vehicle shall, for the purpose of this Act, be deemed to use or kept such vehicle for use in the State, except during any period for which no tax is payable on such motor vehicle under sub section (1) of Section 5. (4) Notwithstanding anything contained in sub-section (1), the Government may, from time to time, by notification in the Gazette, direct that a temporary licence for a period not exceeding seven days or thirty days at a time may be issued in respect of any class of motor vehicles specified in the Schedule on payment of the tax specified in sub-section (5) and subject to such conditions as may be specified in such notification. (5) The tax payable for a temporary licence in respect of a motor vehicle shall be- (a) where the temporary licence is for period not exceeding seven days, at the rate of one-tenth of the quarterly tax on that motor vehicle; and (b) where the temporary licence is for a period exceeding seven days but not exceeding thirty days, at the rate of one third of the quarterly tax on that motor vehicle: [Provided that in the case of vehicle covered with permit under sub-section (8) of Section 88 of the Motor Vehicles Act, 1988 (Central Act 59 of 1988), and registered in any State other than the State of Kerala and entering the State of Kerala and staying therein, the tax payable for such vehicle shall be-- (i) if such stay does not exceed seven days, one tenth of the quarterly tax for one round trip; and (ii) if such stay exceeds seven days but does not exceed thirty days, one third of the quarterly tax for one round trip.] 2A[Provided further that in the case of vehicles covered with permit under sub-section (9) of section 88 of the Motor Vehicles Act, 1988 (Central Act 59 of 1988) and registered in any State other than the State of Kerala and entered the State of Kerala and staying therein, the tax payable for such vehicle shall be,-- (i) if such stay does not exceeds seven days, one tenth of the quarterly tax for one round trip; and (ii) if such stay exceeds seven days but does not exceed thirty days, one third of the quarterly tax for one round trip; and (iii) in the cases of continuous operation in the State, quarterly tax.] 3A[Provided also that in the case of Transport Vehicles registered in any State or Union Territories other than the State of Kerala and found operating in the State of Kerala without remitting tax due to Kerala, a tax equal to double the amount of tax specified in the schedule for such vehicle shall be levied.] [(6) In the case of non-transport vehicles registered in any State other than the State of Kerala and entering into the State of Kerala and staying therein for a period exceeding 30 days, the levy of tax shall be at the rate specified in Annexure-III of the Schedule. (7) In the case of Motor Vehicles brought to the State from any other country for temporary use in the State, a short-term tax shall be levied at the rate 3B[specified in Annexure IV].] [(7A) In the case of motor vehicles in possession of a dealer or a manufacturer, as the case may be, and used on road exclusively for any demonstration purposes, a tax at the rate of 1/15 th of the life time tax specified in Annexure I of the Schedule shall be paid for each year or part thereof: Provided that the life time tax for 15 years specified in Annexure I of the Schedule shall be levied from the date of purchase, at the time of first registration of such vehicle.] 4A[(8)]In the case of motor vehicles in respect of which any reciprocal arrangement relating to taxation has been entered into between the Government of Kerala and any other State Government, the levy of tax shall, notwithstanding anything contained in this Act be in accordance with the terms and conditions of such reciprocal arrangement.: Provided that the terms and conditions of every such reciprocal arrangement shall be published in the Gazette and a copy thereof shall be placed before the Legislative Assembly of the State. Substituted by the Finance Act 2014 (w.e.f. 01/04/2014). Third proviso omitted by Finance Act 2014 (w.e.f. 01/04/2014). Inserted by Act 18 of 2016 (w.e.f. 18/07/2016). Substituted by Act 18 of 2016. Substituted by Kerala Finance Act, 2024 (ACT 18 OF 2024) Published in K.G. Ext. No. 2447 dt.29/07/2024 (w.e.f. 01/04/2024). Prior to the Substitution it read as "Provided further that in the case of vehicles covered with permit under sub-section (9) of Section 88 of the Motor Vehicles Act, 1988 (Central Act 59 of 1988) and registered in any State other than in the State of Kerala and entering the State of Kerala and staying therein, the tax shall be payable from the date of entry till the end of the quarter at the rate specified for such vehicles in the Schedule." Substituted by Kerala Finance Act, 2018 (5 of 2018) (w.e.f. 01/04/2018). Prior to the amendment it read as "as per fourth proviso" Substituted by Kerala Finance Act, 2018 (5 of 2018) (w.e.f. 01/04/2018). Prior to the amendment it read as "tax has been paid at the rate" Inserted by Kerala Finance Act, 2018 (5 of 2018)(w.e.f. 01/04/2018). Substituted by Kerala Finance Act, 2018 (5 of 2018) (w.e.f. 01/04/2018). Prior to the amendment it read as "seventh proviso". Inserted by Kerala Finance Act, 2015(11 of 2015) (w.e.f. 01/04/2015). Inserted by Kerala Finance Act, 2018 (5 of 2018)(w.e.f. 01/04/2018) Substituted by Kerala Finance Act, 2018 (5 of 2018) (w.e.f. 01/04/2018). Prior to the amendment it read as "specified in the Schedule" Inserted by Kerala Finance Act, 2020 (7 of 2020)(w.e.f. 01/04/2020) Renumbered by Kerala Finance Act, 2015 (11 of 2015) (w.e.f. 01/04/2015).