Government to suspend the registration fee for EVs will persuade states also to give tax breaks

“The amount may not be enormous. But this is a signof how the government is keen to walk an extra mile to accelerate the adoption of electric vehicles. We have already released the permit condition for electric vehicle, which people buy for business operation,” said an official.
The Union government has determined to waive off registration fees for electric vehicles. It plans to influence state governments to either waive off or reduce the road tax to support green vehicles.

The resolution was taken at a meeting chaired by Union minister Nitin Gadkari on Monday and is part of the government’s incentives to promote electric mobility in a big way. Sources said the road transport ministry would shortly issue a draft notice seeking public feedback on the recommendation. Centre Motor Vehicle Rules empower the transport ministry to establish the registration charges. The registration fee for two-wheelers is simply 50, and for a private 4-wheeler, the individual is required to pay Rs 600.

“The amount may not be large. But this is a signal of how the government is keen to walk an extra mile to expeditethe adoption of EV’s. We have already exempted the permit condition for electric vehicle, which people buy for retail operation,” said an official.
He added that the real big exception would be felt when all states reduce or end the road tax on EV. Currently, almost half a dozen states, including Maharashtra, Karnataka, Rajasthan, and Goa, don’t levy any highway tax while registering EV. In other states, the road tax for electric vehicles is within 4% to 10%.