Telangana to exempt EVs 100% from road tax & registration fee

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HYDERABAD: In an effort to promote electric vehicles (EVs) and curb vehicular pollution, the state govt on Sunday announced a 100% exemption for road tax and registration fees for various categories of EVs.
The exempted EVs includes electric two-wheelers, four-wheeler commercial passenger vehicles (such as taxis and tourist cabs), private electric four-wheelers and electric three-seater auto rickshaws in both Greater Hyderabad Municipal Corporation (GHMC) and non-GHMC areas. As per the govt order (GO), the exemption has also been extended to electric light goods carriers, including three-wheeled goods vehicles (both in GHMC and non-GHMC areas), electric tractors and electric buses.
Moreover, for buses which are operated by the Telangana State Road Transport Corporation (TGSRTC), this tax exemption will apply throughout the lifetime of the vehicle.
Additionally, those buses which are owned by industries for exclusive employee transport are also eligible for this waiver, provided they are not used commercially. The exemption benefits are available for vehicles registered in Telangana until Dec 31, 2026, without any limit on the number of registrations.

Following the state govt’s decision, motorists can now save up to Rs 2 lakh when purchasing new electric cars. For instance, in cases where an electric car costs above Rs 10 lakh, individuals can benefit from Rs 1.9 lakh reduction in life tax, as the transport department established a 19% tax rate for non-transport vehicles.
For those buying EV two-wheelers, the savings range from Rs 12,000 to Rs 24,000, varying according to the vehicle’s purchase price.

In the past, the state govt had issued the Telangana Electric Vehicle & Energy Storage Policy 2020-2030 by providing incentives, i.e., exemption of road tax, registration fee and retro-fitment incentive for the first few electric vehicles purchased and registered within the state.