The Government of Kerala, on October 29, 2026, issued a notification regarding the reimplementation of the One-Time Settlement Scheme for Motor Vehicle Tax Arrears.
The following has been stated: -
•The Government of Kerala has reintroduced the One-Time Settlement Scheme for motor vehicles having outstanding tax arrears for periods prior to March 31, 2022, where taxes remain unpaid after that date.
•Under the scheme, vehicle owners can settle tax arrears for the period April 01, 2022 to March 31, 2026, by paying 40% of the arrears for non-transport (private) vehicles and 30% for transport vehicles, irrespective of the total period of arrears exceeding four years.
•The scheme will remain available until March 31, 2027, with exemption from green tax and submission of welfare fund receipts. Owners of stolen, dismantled, or unusable vehicles may be exempted from tax liability upon submission of supporting documents, while vehicles undergoing revenue recovery proceedings may also avail the scheme by paying the applicable collection charges.
•If a vehicle declared non-existent under the scheme is subsequently found operating on roads, the full original tax liability shall become payable without exemption.
The detailed notification is given in the document below.
