Telangana government announces 100% tax exemption for electric vehicles

The Telangana government's initiative is a part of its broader electric vehicle policy aimed at creating an eco-friendly transport system while reducing pollution levels in Hyderabad and other urban centres.

In Short

• Telangana exempts road tax and registration fees for EVs
• Covers two-wheelers, four-wheelers, three-wheelers, buses
• Initiative aims to boost EV adoption and reduce pollution

The Telangana government has introduced a 100% exemption on road tax and registration fees for electric vehicles (EVs) in the state. The move is part of the government’s efforts to promote sustainable transportation and reduce air pollution, especially in urban areas like Hyderabad.

The exemption will be in effect for two years, until 31 December 2026, according to a government order issued recently. Transport Minister Ponnam Prabhakar stated that the initiative is designed to make eco-friendly transportation more accessible and encourage the adoption of EVs across different segments.

WHO BENEFITS FROM THE POLICY?

The tax exemption applies to various categories of electric vehicles, including:

• Two-wheelers and four-wheelers: Covering both private and commercial vehicles.
• Three-wheelers: Includes autorickshaws and goods carriers.
• Electric buses: Special provisions for public and private sector buses.
• Electric light goods carriers: Includes three-wheeled goods vehicles, electric tractors, and similar vehicles.

For private vehicles such as cars and two-wheelers, and commercial passenger vehicles like taxis, this tax exemption is available as long as the vehicles are purchased and registered within Telangana.

SPECIAL PROVISIONS FOR ELECTRIC BUSES

The government has made special provisions for electric buses to encourage their use in public and private transportation. Electric buses operated by the Telangana State Road Transport Corporation (TSRTC) will receive an indefinite exemption from road tax and registration fees.

Additionally, buses owned by private industries, used exclusively for employee transport and not for commercial purposes, will also be exempt from these charges until 31 December 2026. This applies regardless of the number of buses registered by the organisation.

AIM OF THE POLICY

The Telangana government’s initiative is a part of its broader electric vehicle policy aimed at creating an eco-friendly transport system while reducing pollution levels in Hyderabad and other urban centres.

With this policy, the government hopes to make EVs a more attractive option for both personal and commercial use by reducing the upfront cost of ownership. Minister Prabhakar highlighted that promoting EV adoption is crucial for achieving the state’s sustainability goals and addressing environmental challenges.