MVD Kerala has informed that private entities who register the buses in other states need to pay tax in Kerala, or else the vehicles will not be allowed to enter the state.

The move is apparently antithetical to the union government’s rationale that tax related cobwebs pertaining to inter-state travel can be curbed with All India Tourist Vehicles (Authorization or Permit) Rule 2021.

The union government implemented this policy as a push for the tourism sector and private players found it catchy as it could bringing down their operational costs.

MVD Kerala identified that some private players in Kerala are registering the vehicle in states like Nagaland, Odisha, Arunachal Pradesh by using the union government’s provision. Those private players are operating within the state and MVD has directed them to change the registration to Kerala.

It may be noted that the tax rate in Kerala is phenomenally high compared to states like Nagaland.