No tax for electric vehicles for 2 years in Tamil Nadu

The government of Tamil Nadu has passed an order for 100% exemption of motor vehicle tax for battery-operated vehicles. This will be for a period of two years commencing from November 1, 2020, until December 31, 2022.

No tax for electric vehicles in Tamil Nadu 

This initiative from the State government is taken to encourage the adoption of electric vehicles. This step is towards making the State an automotive manufacturing hub. Tamil Nadu was the first state to announce its EV policy on September 16.

It aims to build a comprehensive EV ecosystem for which it hopes to attract a cumulative investment of Rs 50,000 crore. Around 150,000 new jobs are expected to be created in the new ecosystem.

Ravneet Singh Phokela, Chief Business Officer, Ather Energy, said, “The past few days have been great for the EV industry, with progressive policies continuing to come into play. The removal of the 4% road tax on EVs will significantly reduce the upfront costs of the vehicles. This has also come at an opportune time for Ather as we begin deliveries of the Ather 450X in Chennai this Deepavali. With this announcement, owners of Chennai and Coimbatore will now save nearly Rs 6,900 when they purchase Ather scooters. This is a welcome move for the entire industry and will accelerate the shift to EVs.”

Many of the electric vehicles manufacturers have been already invested in the state such as Ather Energy, Grinntech and m-Auto.

Tamil Nadu towards achieving big goals to promote the growth of EV adoption

Recently the Tamil Nadu government has announced that it is planning to establish an exclusive park to promote electric vehicles production ecosystem in the state. This park will be spread across 300 acres of land and will include incentives like 100 per cent GST reimbursement and 50 per cent capital subsidy.

As per the EV Policy, the State Government will introduce 100 per cent motor vehicle tax exemption for all-electric vehicles including two-wheelers, cars, auto-rickshaws, buses and light goods carriers till 31 December 2022. Besides this, it will also waive off the registration charges/fees (as per Government of India’s notification) on all-electric vehicles. Three-wheeler goods, e-carriers as well as electric light goods carriers will not be asked for a permit.

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