No Road Tax, Registration Fees For EVs Buyers Till 2026, Announces Telangana Government

The new policy takes effect immediately. Previously, the policy had offered tax exemptions for only 5,000 electric vehicles (EVs), now the cap has been removed.

In an attempt to encourage to adopt electronic vehicles (EVs) that will in turn reduce air pollution, the Telangana government announced a 100 per cent exemption from road tax and registration fees for EVs purchased and registered within the state which will be applicable to the first two years, lasting December 31, 2026. 

This exemption is applicable to different types of electric vehicles (EVs) in the state, including electric two-wheelers, and private and commercial electric four-wheelers such as private cars, taxis, and tourist cabs. It also covers electric three-seater auto rickshaws in both Greater Hyderabad Municipal Corporation (GHMC) and non-GHMC areas, as well as electric light goods carriers, including three-wheeled goods vehicles in these areas.

In respect of electric buses, the exemption will apply for the entire life of the electric vehicles operated by the Telangana State Road Transport Corporation only, and the buses owned by any industry for the purpose of transporting their own employees exclusively and that are not used for commercial purposes, purchased and registered in Telangana for the initial period of two years up December 31, 2026, irrespective of the number of vehicles registered the policy said.

Additionally, the exemption applies to electric tractors and electric buses, making a diverse range of EVs eligible for the road tax and registration fee exemption.

The state Transport Minister, Ponnam Prabhakar while addressing a press conference made this announcement, adding that an order to this effect was issued on Saturday. 

The new policy takes effect immediately. Previously, the policy had offered tax exemptions for only 5,000 electric vehicles (EVs), now the cap has been removed. Currently, there are approximately 1.70 lakh EVs are registered in the state, which make up about 5 per cent of all vehicles registered in Telangana. 

“It will save consumers up to Rs 1 lakh per year. The EV policy is being introduced with the aim of preventing Hyderabad from becoming a polluted city like Delhi,” Prabhakar was quoted by MoneyControl. 

The Transport Minister urged the citizens to prioritise EVs to help reduce pollution and protect the environment for future generations.

 

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