Which State Offers 100% Tax Exemption on EVs? Find Out Here

In a significant move pertaining to the road tax policy, the state administration said on Sunday, November 17, that new electric vehicles (EVs) registered in Telangana would be exempt from road and registration taxes starting on Monday.

State Road and Transport Minister Ponnam Prabhakaran discussed the new EV policy changes in the state, saying, "We brought this policy to avoid pollution in Hyderabad like Delhi." The new Telangana EV policy will be applied to all four-wheelers, two-wheelers, commercial vehicles, and cargo vehicles starting tomorrow (Monday).

No Tax on EVs Till 2026

To encourage the state's residents to embrace EVs, any EV purchased and registered in Telangana would be eligible for the tax exemption through December 31, 2026.

Vikas Raj, the special chief secretary, signed Government Order (GO) No. 41 on November 16th, approving this decision.

100% Tax Exemption

According to the government order, the government has decided to give electric two-wheelers, four-wheelers, commercial passenger vehicles like taxis, private cars, electric three-seater autorickshaws, electric light goods carriers, including three-wheeled goods vehicles, electric tractors, and electric buses a 100% exemption from road tax and registration fees.

Purpose of the Decision

The order encourages the use of fully electric buses, with special benefits for companies purchasing them for employee transportation.  

This step by the state government aims to lower carbon emissions and cut down urban pollution in the state.

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