Puducherry government on recent tax evasion controversies took a bold statement to issue vehicle registration to permanent residential only. The Kerala Motor Vehicle Department has recently issued a notice regarding the Mini Cooper Controversy; where the CPM state secretary Kodiyeri Balakrishnan has reportedly seen using it for his "Jana Jagratha Yatra" in Koduvalli. The MVD is now preparing a list of vehicles registered under Puducherry to find fraudulent owners.
In Kerala, the tax is levied as per the total price of the vehicle, where vehicles below Rs 5 lakhs attracts 6 percent of the total amount. While vehicles from 5 lakh to 10 lakhs attracts a total of 8 percent and vehicles from 10 lakhs to 15 lakhs attracts 10 percent, vehicles from 15 lakhs to 20 lakhs attracts 15 percent and vehicles above 20 lakh attracts a whopping 20 percent. The high tax rates of the state make people and even celebrities register their vehicles under places like Puducherry where tax rates are considerably low and affordable.