Vehicle tax on tourist caravans slashed by 50%

In compliance with a proposal made by the State government in the 2022-23 Budget

In a major support to Kerala’s Caravan Tourism initiative, Keravan Kerala, the Transport department has slashed the quarterly Motor Vehicle tax on tourist caravans operating in the State by 50% from ₹1,000 to ₹500 with effect from April 2022.

The decision has been taken in compliance with the proposal made by the State government in the 2022-23 Budget.

According to a Government Order in this regard, the concession will be made available to tourist caravans based on the details furnished in advance by the Director of Tourism.

The reduced tax rate will be made applicable from the succeeding quarter of the date of execution of the contract with the Tourism department. The caravans should have a valid contract carriage permit and should be registered under the category transport vehicles to be entitled for the concession.

“Kerala’s caravan tourism policy made a difference at the very outset itself as it offered attractive incentives to the tourist caravan operators. The reduction of tax by 50% will further incentivise this initiative and accelerate the pace of post-pandemic revival of the sector,” said Tourism Minister P.A. Mohamed Riyas.

Shortly after the Tourism Minister unveiled the Caravan Tourism Policy last year, Transport Minister Antony Raju had promised to reduce the Motor Vehicle tax on tourist caravans, considering the immense scope of Caravan Tourism.