In a major boost to the adoption of electric vehicles in the State, the Tamil Nadu government has passed on order for 100 per cent exemption of motor vehicle tax for battery-operated vehicles (BOVs).
The State government had earlier issued orders for a 50 per cent concessional rate of lifetime tax in respect of battery-operated two-wheelers and four-wheelers of non-transport vehicles. However, a request was made for a 100 per cent exemption by the Transport Commissioner.
The government said that after careful examination it has decided to grant a full tax exemption for all BOVs.
All BOVs, both transport and non-transport (EVs), are exempted from payment of motor vehicle tax under the Act from November 3, 2020 to December 31, 2022, said the government order dated November 2.
After establishing itself as a hub for automotive manufacturing, the Tamil Nadu government has been making several efforts to emerge as an attractive centre for electric mobility. Last year, it launched a separate policy for EVs, paving the way for fresh investments by several players into EV manufacturing and associated areas.
In March 2020, the State government announced it would also plan a futuristic EV charging station using solar power at a government campus.
This EV charging station will offer slow and fast charge features. Depending on the success of this model, the government plans to ramp up the number of such stations.
Delhi has announced an exemption of road tax on all EVs or BOVs while States like Telangana, which recently announced a new EV policy, offer 100 per cent exemption in road tax and registration fees for early adopters in different EV segments.
“Lately, there has been a lot of positive news on the EV policy front from the Central and State governments that has led to a higher confidence amongst OEMs, component suppliers and investors,” said Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles.