Kochi: The Kerala High Court has ruled that the state government has the authority to levy taxes on Bharat (BH) Series non-transport vehicles. The court emphasized that while the Central Government can establish guidelines through laws or subordinate legislation, the power to impose taxes on motor vehicles rests solely with individual states.
The ruling came in response to challenges against the state’s decision to collect road tax on BH series vehicles, which were introduced by the central government to simplify vehicle registration for individuals frequently relocating between states.
The High Court clarified that the Motor Vehicles Act allows the Centre to regulate transportation, but taxation rights over motor vehicles fall under the jurisdiction of state governments as per constitutional provisions.
This decision reinforces the states’ exclusive authority to impose and collect taxes on vehicles within their boundaries, ensuring that revenue from such taxes supports state-level infrastructure and development.
The verdict is expected to impact vehicle owners with BH series registrations in Kerala, who will now be required to comply with the state’s tax regulations.
