Kerala Raises Vehicle Tax Exemption Ceiling for Persons With Disabilities to Rs 15 Lakh

The Kerala government has raised the vehicle tax exemption limit for persons with disabilities from Rs 7 lakh to Rs 15 lakh, providing relief to eligible beneficiaries purchasing vehicles, Transport Minister C P John said.

The revised exemption applies to vehicles purchased by persons with multiple disabilities, including autism, cerebral palsy and intellectual disabilities, according to a statement issued by the minister. The decision is particularly relevant for persons with multiple disabilities, for whom access to suitable personal transportation can be important for mobility, education, employment and access to essential services.

Under the earlier provision, motor vehicle tax exemption was available for vehicles with a purchase value of up to Rs 7 lakh. With the latest revision, eligible persons can now avail themselves of the exemption for vehicles costing up to Rs 15 lakh.

The increase in the exemption ceiling was announced in the revised Budget for 2026-27 as part of the state government's measures concerning persons with disabilities.

John said the government has now taken steps to implement the Budget announcement by amending the Kerala Motor Vehicles Taxation Act. A fresh notification has also been issued, revising the order issued in 2022, he said.

The revised provision is expected to expand the range of vehicles that eligible persons can purchase while benefiting from the motor vehicle tax exemption.