Central Govt asks States to exempt permit, minimise road tax for EVs

The Central government on Wednesday reportedly asked the state governments to exempt Electric Vehicles (EVs) from permit requirements.

According to ET a letter signed by joint secretary of Ministry of Road Transport and Highways (MoRTH) Abhay Damle was sent to principal secretaries transport and transport commissioner of all states.

The letter dated July 17 advised them to operationalise the ministry’s notification by registering electric vehicle for passenger mobility without imposing any permit requirement.

“On 18th October, 2018 the ministry has exempted the electric vehicles from the requirements of passenger transport permit. However, most of the states have not implemented the notification and are still insisting for permits of EVs. This acts as a barrier against the proliferation of electric vehicles in passenger transport segment,” the notification said.

Additionally, the ministry also suggested states to either minimise the road tax for electric vehicles or exempt them from paying road tax for vehicle registration.

“States, which have not reduced or waived the road tax on EVs, may please consider waiving the road tax to the maximum possible extent on the electric vehicles so as to reduce the initial cost of the vehicle to the users,” read the notification which had several other announcements for promotion of EVs.

Under FAME-II scheme, the Department of Heavy Industries provided subsidies on the EVs being used as transport vehicles several states have also waived the road tax on EVs, thereby reducing the cost of acquisition of these eco-friendly vehicles.

In the recent past, MoRTH has taken several measures to promote the demand of electric vehicles which includes green registration plate for zero emission vehicles for distinct identity, exemption of EVs from the permit requirement for playing as transport vehicle and licence to drive e-scooters to those in the age group of 16-18 age.