A major boost for e-vehicles: 100% exemption announced by Tamil Nadu government

Additional chief secretary, S.K. Prabhakar released an order on November 2 2020, to give a major boost to the adoption of electric vehicles in the state; the government passed an order that allows the 100% exemption for all battery-operated vehicles.

Both non-transport and transport have been exempted from November 3, 2020, to December 31, 2022. State Transport Department official said that several State governments and Union Territories had been giving tax breaks of different percentages but a state giving 100% exemption would pave the way for boosting the sale of e-vehicles for commercial exploitation in a tremendous way. E-vehicle purchasers would have to pay a minimum of ₹1,200 for two-wheelers and ₹2,500 for four-wheelers as registration charges.

 “The past few days have been great for the e-vehicle industry, with progressive policies continuing to come into play. The removal of the 4% road tax will significantly reduce upfront costs. This has come at an opportune time for Ather as we begin deliveries of the Ather 450X in Chennai this Deepavali. With this announcement, residents of Chennai and Coimbatore will now save nearly ₹6,900 when they purchase Ather scooters. This is a welcome move for the entire industry and will accelerate the shift towards EVs,” said Ravneet Singh Phokela, chief business officer.

Earlier the state government issued orders for the 50% concessional rate of lifetime tax for all battery-operated vehicles. However, the transport minister made a 100% exemption.

 “A welcome move from the Tamil Nadu government to promote electric vehicles. However, the sale of private motor vehicles is already skyrocketing since the COVID-19 pandemic began. Considering the higher reliance on private motor vehicles, it is advisable to consider the purchase of new vehicles along with old vehicle buyback and scrapping policies,” said Sivasubramaniam.