Premium segment vehicles help drive MVD record revenue in 2023 in Kerala
KOCHI: Revenue collection by the Motor Vehicle Department (MVD) seems to be keeping the state exchequer’s registers ringing in an otherwise tepid year.
According to the latest figures, tax and other charges collected by the MVD touched Rs 5,608 crore in 2023, a robust increase of nearly 18% from Rs 4,753 crore registered in 2022. This represents an Rs 883-crore increase in absolute terms.
This is the highest revenue recorded by the department in a calendar year. That this was registered despite a decline in the number of vehicles registered in the state adds more sheen to the achievement. According to data, 7,56,911 vehicles were registered in 2023, down 4% from 7,83,953 in 2022.
Industry observers said the spike in revenue was due to the increase in tax slabs for high-end vehicles. “Compared to previous years, the number of high-end vehicle registrations in the state skyrocketed. Now, more high-end vehicles are registered in the state,” said B J Antony, former senior deputy transport commissioner.
As per MVD’s latest tax slab, vehicles costing more than Rs 20 lakh are charged a 21% tax. “The increase in the number of private vehicle registrations, especially in the premium segment, increased revenue,” he said.
The department generated a revenue of Rs 3,614.11 crore in 2021. It stood at Rs 2,681.43 crore a year earlier. Of the Rs 5,608 crore collected in 2023, the major share was from motor vehicle tax, at around Rs 5,099 crore. Apart from compound fee, display of advertisements, fitness inspections, hypothecation, and new vehicle registrations are the other sources of income for the department.
Transport Commissioner S Sreejith said awareness campaigns and drives contributed to increased revenue. “The department needed to collect an arrear amount of Rs 1,000 crore, pending since 2008. The revenue is generated mostly from fitness inspections, registrations, and other activities. There is a misconception among the public that the revenue is primarily from fines. In reality, fines constituted around Rs 200 crore,” he clarified.