The Society of Manufacturers of Electric Vehicles (SMEV) requested the government on Tuesday to create a uniform policy exempting all the electric vehicles (EVs) from paying road taxes.
In a letter to Nitin Gadkari, the Union Minister for Road Transport and Highways, SMEV argued that a consistent and supportive policy environment is necessary to hasten India’s transition to electric mobility.
Sanjay Kaul, chief evangelist for SMEV, wrote: “I am writing to request your esteemed office to weigh in on a unified policy of road tax exemption for EVs that will play a crucial role in promoting the adoption of clean and sustainable transportation options, which is vital for our nation’s environmental and economic future.
Unified Policy on road tax for EVs
Kaul had been appointed by SMEV as its chief evangelist in July to aid in the revision of the association’s agenda. This government contribution (single policy of road tax exemption for EVs) will become even more pertinent and important, he said, in light of the Ministry of Heavy Industries’ decision to lower the subsidy component midway through the FAME II plan.
According to Kaul, road tax and registration fees are crucial elements affecting the growth or decline of EVs, not just administrative procedures.
“These levies can serve as a carrot or a stick, encouraging customers to make environmentally friendly decisions or driving them back to classic gas-guzzlers. Due to their sophisticated battery systems, EVs frequently come with larger price tags, therefore these additional upfront expenses may be the deciding factor for potential purchasers, according to him.
According to Kaul, the patchwork of state-by-state road tax laws is a barrier to the EV revolution. He stated that while some states, including Punjab and Uttar Pradesh, have already dropped road tax and registration costs, others are appallingly behind.
This unfair playing field deliberately discourages eager EV adopters, delaying the momentum of an industry poised to shift into high gear. It doesn’t only cause uncertainty.
“Even more disheartening are states like Andhra Pradesh and Telangana, who once enticed buyers with tax breaks only to backtrack and impose taxes, adding yet another hurdle in the race toward a sustainable future,” he said. State-by-state variations in tax laws are not only perplexing; they are also impeding the EV movement, according to Kaul.
“What India needs right now is a favorable, cohesive framework that accelerates our shift to electric mobility. In order to cut through the clutter and pave the way for the general adoption of this ground-breaking technology, your respected office should issue centralized advise, he continued.
The government has a rare chance to lead India into a cleaner, greener future by publishing national advice that promotes a standard policy on road tax exemptions for EVs, he added. Kaul has been tasked with assisting the SMEV industry in overcoming the crisis it has been experiencing since last year, when nearly all original equipment manufacturers (OEMs) in the industry were having trouble adhering to the FAME II scheme’s policy requirements.
