The Government of India is working towards promoting electric vehicles in the country. For the same, the Road Transport and Highways Ministry, led by Union Minister Nitin Gadkari, has issued a notification proposing to exempt all-electric vehicles from paying road tax for vehicle registration. This is good news for car manufacturers as well as those who are eager to buy EVs. The road tax exemption will apply to all categories of vehicles, including two-wheelers, three-wheelers and four-wheelers sold in the country. In addition, existing EVs will not be charged any renewal fee if the offer is accepted.

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Earlier FAME II was expected to include something similar in the policy, but it did not happen. Tax exceptions in the FAME II policy were limited to taxis only and were not for privately owned vehicles. However, the new proposal takes note of this and will boost the EV sector in India which is currently in its infancy. In a statement issued by the ministry, the Ministry of Road Transport and Highways has taken steps to provide inter-registration fees under the Central Motor Vehicles Rules 1989 to promote battery-powered or electric vehicles in the country.

For your information, the government plans to completely remove fossil fuel-driven cars by 2030. A few days ago, the scheme had proposed to allow the sale of electric vehicles in India only by 2030. In addition, the government plans to sell only electric three-wheelers and electric two-wheelers from April 2023. All non-electric vehicles sold from April 2020 must comply with BSV emission norms that reduce harmful emissions in cars.

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