Kerala reopens one-time settlement for motor vehicle tax arrears: pay 40% (private) or 30% (transport) till 31 March 2027
TaxByKK · Compliance News · taxbykk.com29 Oct 2026
In short
The Government of Kerala is re-implementing its One-Time Settlement Scheme for motor vehicle tax arrears. Owners who have not paid tax since 31 March 2022, with arrears for any period before that, can settle by paying only a share of the tax for the four years from 1 April 2022 to 31 March 2026: 40% for non-transport (private) vehicles and 30% for transport vehicles, however long the arrears run beyond four years. The facility is open till 31 March 2027.
- Authority
- Government of Kerala
- Source
- Kerala government portal, "One-time settlement scheme: Motor vehicle tax arrears can be paid", last updated 29 October 2026
- Type
- Press release
- Open till
- 31 March 2027
- Private (non-transport) vehicles
- Pay 40% of the tax arrears for the four years up to 31 March 2026
- Transport vehicles
- Pay 30% of the tax arrears for the four years up to 31 March 2026
What changed
| Item | Before | Now |
|---|---|---|
| Arrears of motor vehicle tax for long-unpaid vehicles | Full arrears payable | Settled by paying 40% (private) or 30% (transport) of four years' arrears up to 31 March 2026 |
| Green tax and welfare fund receipts | Payable or required | Exempt for owners using the scheme |
| Stolen, dismantled or unusable vehicles | — | Exempt from tax on submitting sufficient documents |
| Owners facing revenue recovery | — | Can use the scheme by also paying the revenue collection charge |
The document we have is the State's own web announcement, not the Government Order or Gazette notification, so it gives no order number, application procedure or office to approach. If a vehicle written off as non-existent under the scheme is later found on the road, the full original tax becomes payable without any exemption.
Who it applies to
- Owners of vehicles in Kerala with motor vehicle tax arrears since 2022
- Transport operators and fleet owners
- Owners of stolen, scrapped or unusable vehicles still on the records
- Advisers handling revenue recovery cases
What to do
- Check the tax arrears on your vehicle with the Motor Vehicles Department.
- If eligible, settle by paying 40% (private) or 30% (transport) of the four years' arrears before 31 March 2027.
- For a stolen, dismantled or unusable vehicle, collect the documents needed to claim exemption.
- Ask the RTO office for the Government Order and procedure; the announcement does not give them.
Reference
Government of Kerala, official web portal (kerala.gov.in), "One-time settlement scheme: Motor vehicle tax arrears can be paid", last updated 29 October 2026.
Read the official PDF: Kerala government announcementWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
How much must a private vehicle owner pay under Kerala's one-time settlement?
40% of the tax arrears for the four years up to 31 March 2026.
And transport vehicles?
30% of the tax arrears for the same four years.
Until when is the scheme open?
Till 31 March 2027.