The Kerala Motor Vehicles Taxation Act 1976. stipulates that a tax shall be levied on every motor vehicle used or kept for use in the state at the rate specified in the Schedule.

         The Act authorises the Motor Vehicles Department to levy and collect motor vehicles tax. An endorsement detailing the rate of tax, mode of payment , place of payment etc will be made in the Registration Certificate, prior to its issuance. The endorsement required the owner or possessor of the vehicle to remit the tax in advance within the prescribed period without waiting for a further notice.

In case the owner or possessor of a vehicle failed to remit the tax within the prescribed period, an additional tax at the rate applicable on the date of payment,  will also be levied.

The department has powers to take the following steps to recover the amount from the defaulters. If a vehicle is found operating without payment of tax, it can be seized and retained by officers of this department not below the rank of Assistant Motor Vehicles Inspector.

After sending a formal demand notice, giving an opportunity to the defaulter for the remittance, the department will recommend the Government to initiate Revenue Recovery Proceedings against the defaulter to recover the amount.