The Kerala government’s decision to slash the tax on All India Permit (AITP) vehicles by 50%, as announced in the Kerala Revised Budget 26-27, has been welcomed by the Luxury Bus Owners Association Kerala (LBOA).

According to the office-bearers of the LBOA, the decision will significantly benefit Kerala’s public transport and tourism sectors.

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Following the revision, the tax on All India Permit vehicles registered in Kerala has been reduced from ₹2,000 to ₹900 for ordinary seats and from ₹3,000 to ₹1,500 for sleeper berths. This has resolved a major crisis that the motor vehicle industry had been staring at for years, the association said.

The tax reform will also significantly reduce the trend of registering vehicles in other states such as Nagaland, Odisha, and Karnataka. Tourist and omni bus owners will now be able to register their vehicles in Kerala itself, the association said.

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The reform will also help the State government increase tax revenue substantially and encourage more young entrepreneurs to enter the sector, they said.