Tax levied on foreign caravans as per law, says Kerala MVD

With the Motor Vehicles department’s collection of ₹10,000 as road tax from a group of foreign nationals, who arrived in Kerala a few days ago in caravans registered abroad, stirring up a controversy, the department has clarified that it was done as per the provisions of Finance Act, 2018.

Under the Act, owners of vehicles brought to Kerala from other countries for temporary use must pay ₹10,000 as tax and ₹5,000 every additional month they operate in the State. It could be done for a maximum period of up to six months, said Ernakulam Regional Transport Officer G. Anantakrishnan.

Similarly, the tax has been specified for long-term use of vehicles registered in other States. Those that are used here for over a month and less than a year must pay 1/15th of the total tax of that category of vehicles, while those that are used for over a year must pay as per the age of the vehicles, as mandated by the MVD.