Thiruvananthapuram: The Kerala government has voiced its opposition to the BH registration for vehicles, which allows private vehicles to be registered and used anywhere in the country with a single registration. According to the state government, the implementation of this project could result in an annual revenue loss of Rs 300 crore for the state.
In response to the central government’s proposal, Kerala government emphasised that the power to determine road tax rates lies solely with the state government. They asserted that they could not endorse the lower tax rates proposed by the central government.
In Kerala, vehicles priced above Rs 20 lakh are subject to pay road tax of 21 percent, whereas Bharat registration (BH) imposes a tax of 12 percent, significantly lower than Kerala’s current tax rate. Additionally, if the registration is under BH, then paying 12 percent tax on the vehicle price, without GST, in two annual installments is sufficient. However, in Kerala, up to 21 percent of the vehicle price, including GST, is charged.
The Central Government introduced Bharat registration to streamline the registration process for individuals who operate vehicles across multiple states. Instead of paying a one-time tax for 15 years, Bharat registration allows taxes to be paid over a two-year period.
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