Kerala raises vehicle tax exemption cap for persons with disabilities to ₹15 lakh
Kerala has increased the vehicle purchase-value limit eligible for motor vehicle tax exemption for persons with multiple disabilities from ₹7 lakh to ₹15 lakh, following its 2026-27 Budget announcement. The move could widen access to higher-priced adapted vehicles.
What happened
Kerala Government · Kerala raised the motor vehicle tax exemption purchase-value limit for persons with multiple disabilities from ₹7 lakh to ₹15 lakh,
Key facts
- ₹15 lakh
- ₹7 lakh
- 2026-27
- 2022
What changed
Kerala raised the motor vehicle tax exemption purchase-value limit for persons with multiple disabilities from ₹7 lakh to ₹15 lakh, implementing a 2026-27 Budget announcement through amendments to the state taxation law and a revised notification.
Why this matters
Auto retailers in Kerala can target a broader pool of disability-focused buyers with adapted-vehicle inventory, accessible showrooms and finance support for models priced up to ₹15 lakh.
What to watch
- Kerala transport department notification clarifying eligible disability categories, vehicle types, tax components, and documentation process.
- Dealer-reported enquiry and booking growth for vehicles priced from ₹7 lakh to ₹15 lakh.
- OEM launches or variant repricing that position automatic and adapted models below the ₹15 lakh threshold.
- Processing times for exemption approvals and availability of certified adaptation vendors.
- Whether other Indian states raise similar exemption caps, creating a broader policy-driven demand segment.