The Central Government has granted Kerala permission to reinstate the state tax on All India Tourist Permit (AITP) vehicles entering Kerala. The approval restores the Motor Vehicles Department’s authority to collect a quarterly tax ranging from ₹35,000 to ₹41,000, depending on the vehicle’s seating capacity.
With the Centre’s nod, the tax-collection module will once again be activated on the national Vahan portal, enabling seamless and legally compliant collection of dues. The update brings an end to the months-long impasse that began after the tax option was disabled amid petitions from private luxury bus operators.
Kerala officials have welcomed the decision, stating that the move is crucial to preventing revenue loss and ensuring a level playing field for local operators. However, sections of the private bus industry warn that the renewed tax burden may impact interstate fares and service frequency.
The reinstatement marks a significant win for the state as it strengthens regulatory control over incoming tourist vehicles while safeguarding its annual revenue stream.
