Telangana Government Announces 100% Tax Waiver for Electric Vehicles

Hyderabad: In a significant boost for electric vehicle (EV) adoption, the Telangana government has announced a 100% waiver on road tax and vehicle registration fees for all EVs. The new EV policy, unveiled by Transport Minister Ponnam Prabhakar on Sunday, aims to reduce vehicular pollution across the state and encourage clean energy solutions.

The policy, effective from Monday, removes previous restrictions on the number of vehicles eligible for tax exemptions. Minister Prabhakar emphasized that this initiative applies to all EV registrations within the state until December 31, 2026, with a potential extension if needed.

Highlighting the comprehensive nature of the policy, the government has included two-wheelers, cars, autos, commercial passenger vehicles, light goods vehicles, tractors, and buses under this exemption. Additionally, companies in IT, pharma, and RTC sectors purchasing electric buses for employee transportation will also benefit.

Despite a significant revenue loss estimated in hundreds of crores annually, the government remains committed to incentivizing EV adoption. Motorists purchasing a second electric vehicle will also be exempted from the 2% additional tax.

Transport Department officials, including Special Chief Secretary Vikas Raj and Commissioner Surendra Mohan, were present at the announcement, which also saw the issuance of JV 41 detailing the policy.