Kerala Hikes EV Taxes: Luxury Electric Cars Face Up to 10% Road Tax

In a surprising move, Kerala has increased road taxes on electric vehicles, targeting luxury EVs. Finance Minister K.N. Balagopal announced that electric cars priced above Rs 15 lakh will now face an 8% tax, while those over Rs 20 lakh will be subject to a 10% tax. This decision, part of the state's 2025-26 budget, aims to generate additional revenue but may impact Kerala's leading position in EV adoption. The new tax structure also introduces a 10% levy on electric cars with battery rental facilities, regardless of their cost.

Source: Business Standard