Starting April 1, Kerala will implement a series of tax revisions announced in the state budget on February 7. The new rates, covering court fees, land taxes, and vehicle charges, were officially approved in the Assembly through the finance bill on Tuesday.
Major Hike in Court Fees
For the first time in two decades, Kerala has significantly increased court fees, with hikes ranging from 500% to over 6500%. The fee for filing a suit for declaration of property ownership has surged from ₹1,000 to ₹5,000, while the fee for seeking relief concerning immovable property has jumped from ₹500 to ₹2,500. Similarly, cases related to possession of trust property will now incur a fee of ₹10,000 instead of the previous ₹200 or ₹1,000, depending on market value.
The charge for filing a case under the Specific Relief Act, 1977, has also seen a substantial rise—from one-third of the market value of the property (or a minimum of ₹150) to ₹10,000. Legal challenges related to elections have become costlier too, with fees for filing petitions against elected representatives seeing significant increases. For instance, challenging a panchayat member’s election now costs ₹250, up from ₹50, while the fee for contesting a mayor’s election has increased from ₹250 to ₹3,000.
Despite these hikes, there is some relief for marginalized communities. Under the revised rules, members of Scheduled Castes and Scheduled Tribes can file suits without paying fees if their annual income does not exceed ₹3 lakh (up from ₹12,000), and if their claim is below ₹10 lakh (previously ₹15,000). Additionally, habeas corpus and Public Interest Litigation (PIL) petitions in the High Court will not be subject to the increased fees. Through these measures, the Kerala government aims to generate an additional ₹150 crore this fiscal year.
Increase in Land Tax
Basic land tax rates will rise by 50% across all categories. In panchayat areas, land up to 8.1 ares will now be taxed at ₹7.5 per are (earlier ₹5), while land beyond this threshold will be charged at ₹12 (earlier ₹8). Similarly, in municipal areas, the tax for land up to 2.43 ares will be ₹15 (previously ₹10), and for larger plots, ₹22.5 (previously ₹15). In corporation limits, the tax for land up to 1.62 ares will increase from ₹20 to ₹30, and for plots above that, from ₹30 to ₹45.
Changes in Vehicle Taxes
As part of a tax simplification initiative, quarterly taxes on contract carriages will now follow a uniform structure. Carriages with 6-12 seats will pay ₹350 per quarter, those with 13-20 seats ₹600, and those with 20 or more seats ₹900. The tax on sleeper berth buses will be reduced from ₹1,800 to ₹1,500 per berth per quarter. These adjustments are expected to add ₹15 crore annually to state revenue.
Higher Road Tax for Older Vehicles and EVs
To discourage the use of older vehicles, the road tax on two-wheelers, private three-wheelers, and private motor cars older than 15 years will be increased by 50%. Meanwhile, electric vehicles (EVs) will see a new tax structure. Currently, EVs are subject to a lifetime road tax of 5% of their cost. However, from April 1, vehicles costing over ₹15 lakh will be taxed at 8%, while those priced above ₹20 lakh will be taxed at 10%.
With these revisions, Kerala’s government aims to boost revenue while encouraging sustainable transportation and reducing dependence on aging vehicles.
