In a significant move to promote electric vehicles (EVs) and reduce pollution, the Telangana government has announced a 100% exemption from road tax and registration fees on the purchase of electric vehicles in the state. The decision, which comes into effect on Monday, applies to electric 2-wheelers, 4-wheelers, commercial passenger vehicles, goods carriers, auto-rickshaws, and even tractors.
The exemption reverses a controversial decision by the previous BRS government, which had imposed road tax on EVs in August 2023, with rates ranging from 11% to 15%. The new policy aims to make EVs more affordable and boost their adoption, aligning with the state’s broader goal of reducing air pollution and promoting sustainable transport.
Transport Minister Ponnam Prabhakar, announcing the policy on Sunday, also outlined plans for infrastructure upgrades, including an expansion of EV charging stations across the state. The Telangana Electric Vehicle & Energy Storage Policy 2020-2030 will also offer incentives to EV manufacturers to set up production units in the state.
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As part of efforts to curb pollution, the government has committed to introducing 3,000 electric buses in Hyderabad, replacing the city’s existing diesel buses. The Telangana State Road Transport Corporation’s electric buses will be exempt from road tax and registration fees for their lifetime, a provision that will also apply to electric buses used by industries for employee transport, as long as they are not used for commercial purposes.
The move is part of a larger strategy to transform Hyderabad into a cleaner, more sustainable city and prevent it from reaching pollution levels seen in other major cities like Delhi. Minister Prabhakar encouraged citizens to choose EVs when purchasing new vehicles, marking a pivotal step toward a greener future for the state.
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