Kerala Raises Motor Vehicle Tax Exemption Limit for Vehicles Bought by Persons with Disabilities to ₹15 Lakh

Government Vehicle Tax Benefits John Exemption Budget

Thiruvananthapuram: The Kerala government has increased the purchase value limit eligible for motor vehicle tax exemption for vehicles bought by persons with disabilities from ₹7 lakh to ₹15 lakh, Transport Minister C.P. John announced.

The tax exemption was previously available for vehicles purchased by persons with multiple disabilities, including autism, cerebral palsy and intellectual disability, for a purchase value of up to ₹7 lakh. The state government had announced in the revised Budget speech for the financial year 2026-27 that the exemption limit would be increased to ₹15 lakh.

According to Transport Minister C.P. John, the government has now implemented the Budget announcement by amending the Kerala Motor Vehicles Taxation Act. As part of the process, the government also revised the 2022 order and issued a new notification, the minister said.

The revised exemption limit applies to motor vehicles purchased by persons covered under the specified category of multiple disabilities. The earlier provision had restricted the benefit to vehicles with a purchase value of up to ₹7 lakh.

The increase in the exemption limit to ₹15 lakh follows the state government's Budget announcement for 2026-27. The amendment to the Kerala Motor Vehicles Taxation Act and the issuance of the new notification were undertaken as part of implementing that announcement, Minister C.P. John stated.

The government had earlier provided the motor vehicle tax concession specifically for vehicles purchased by persons with multiple disabilities, including autism, cerebral palsy and intellectual disability. With the latest notification, the purchase value limit for availing the tax exemption has been revised from ₹7 lakh to ₹15 lakh.

Government Vehicle Tax Benefits John Exemption Budget