Kerala budget: Taxes, including on EVs, hiked to boost revenues

STAYING CLEAR OF populist measures, the final budget of the second Pinarayi Vijayan government in Kerala presented on Friday proposed a hike in the road tax on electric vehicles as a revenue-boosting measure and kept its focus on infrastructure development.

- FE BUREAU

The budget for the year 2025-26 presented in the assembly by finance minister KN Balagopal also proposed an increase in land tax, road tax on over 15-year-old private vehicles and court fees to raise its receipts, which is around ₹27,000 crore short of its proposed expenditure for 2025-26.

In the revised estimate, Kerala's fiscal deficit is estimated to be a little higher at 3.51% for FY25 as against the budget estimate of 3.4%. For FY26, the fiscal deficit is estimated to be 3.16%.