Kerala Firmly Opposes ‘Bharat Registration’ Proposal by Centre

Kerala has strongly opposed the Centre’s ‘Bharat Registration’ initiative, which allows the use of private vehicles across the country with a single registration. The state government argues that implementing this system could result in an annual loss of Rs 300 crores for Kerala. The response from the state emphasized that decisions on road taxes ultimately lie with the state government, rejecting the Centre’s proposal to lower overall tax rates. This opposition is seen as part of Kerala’s firm stance to prevent perceived interference by the central government in its internal matters.

The BH registration proposed by the Centre suggests that vehicle owners pay only 12 percent of the total vehicle price (excluding GST) as tax in installments over two years. However, Kerala imposes a tax of up to 21 percent of the vehicle price (including GST). Under the BH registration system, owners would only pay taxes for two years in the state where the vehicle is in use. If a vehicle from another state is used for over six months, the owner must transfer the registration to the new state by paying taxes.