Government To Increase Taxes On These Cars! » MotorOctane

Well, with the fuel crisis in the news and most people actually thinking about getting an EV, the government has some different plans. We all thought that, not just the running costs, but the initial cost of owning an EV is cheaper, thanks to various subsidies and tax exemptions. We are sorry to inform you that this is no longer the same! Here is the whole truth- 
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Government To Put Road Tax On EVs as well!

We all pay a considerable amount of tax on any ICE vehicle while make a purchase, but with EVs, it’s a different story. Most major cities in Maharashtra, Delhi, Uttar Pradesh, and elsewhere offer full road tax exemption for EVs. But with rising demand and to balance revenue, the Karnataka Government has passed a bill on road taxation for EVs. Earlier What potential EV owners in the state were going to pay 0% of the road tax on their EVs. Now, have to pay 5% to 10%. What is this new road taxation law, and how does it matter to you? 

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If you live in Karnataka and are planning to buy an EV, you should be worried about this news. But according to the new bill, if you’re looking for an EV priced over Rs 10 lakh, you have to pay an additional road tax. The 5% tax applies to cars up to Rs 10 lakh, whereas cars priced between Rs 10 lakh and Rs 25 lakh bear an 8% tax. And not just that: the maximum tax is imposed on cars above Rs 25 lakh, up to 10% of the vehicle’s cost. Does that mean that earlier, you didn’t have to pay anything above the ex-showroom prices? No, that’s not true for sure. Even if your EV had a 100% road tax waiver, you would still have to pay for registration and insurance, which together account for a considerable share of the final price you pay. Why should you worry about this if you don’t live in Karnataka? 

Why Does It Matter To You? – EV Road Tax In India

Karnataka is not the first state to impose a road tax on EVs; earlier, Gujarat, Haryana and Kerala have also done so. And the 100% waiver policy can be extended to your city, too. With rising demand, this additional taxation might hit your state in the coming years. This tax will be lower than that on petrol and diesel vehicles. But with a decrease in ICE sales and an increase in EV sales, the government might lose a significant share of the income it generates from taxes used to improve and maintain the country’s road infrastructure.

What do you think about this new government bill?

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