Tamil Nadu government announces 100% tax exemption for e-vehicles

The government of Tamil Nadu, in order to give a major boost to the adoption of electric vehicles in the state, has passed an order that allows the 100% exemption of motor vehicle tax for battery-operated vehicles.

As per the order dated November 2, 2020, by the state government, all BOVs, both non-transport and transport have been exempted from the payment of Motor Vehicles Tax from November 3, 2020, to December 31, 2022.

Earlier, the state government had issued orders for the 50% concessional rate of lifetime tax in respect of battery-operated four-wheelers and two-wheelers of non-transport vehicles. However, the transport minister made a request for a 100% exemption.

Tamil Nadu government also announced that the decision to grant a full exemption for all battery-operated vehicles has only been made after careful examination by the authorities.

Efforts to be an attractive centre for electric mobility:

Tamil Nadu, after establishing itself as a hub for automotive manufacturing, has made several efforts to establish itself as an attractive centre for electric mobility.

In 2019, the state launched a separate policy for Electric Vehicles which paved the way for fresh investments by various players into EV manufacturing and associated areas.

The state government in March 2020 also announced that it will plan a futuristic EV Charging station with the use of solar power at the government campus. The station will offer the features of slow and fast charge and depending on the success of it, the government will plan to increase the number of such stations.

Push for electric mobility in other states:

States like Telangana, which recently announced a new Electric Vehicle Policy, has offered a 100% exemption in road tax and registration fees for early adopters in EV segments. While Delhi announced a road tax exemption on all EVs and BOVs.

There has also been a lot of positive news on the EV Policy front from both the state and central governments which has also led to higher confidence among the investors and component suppliers.