New Telangana EV policy explained — Zero road tax and registration fees

The government of Telangana has announced its new EV policy, the highlight of which happens to be a 100% tax waiver on sale of new electric vehicles in the state. Read on to know more about the new Telangana EV policy that enables zero road tax and registration fees for new electric vehicles.

Zero road tax, registration fees on EVs

Yes, you have read that right. The government of Telangana will not levy road tax and registration fees on sale of new electric vehicles in the state. The policy covers the sale of all kinds of electric vehicles till the end of 2026. The 100% road tax and registration fees waiver covers everything from electric two wheelers, cars and auto rickshaws to electric three wheelers, tractors and even buses. Another highlight of the newly-introduced EV policy is that it doesn’t limit the number of EVs to be exempted from road tax and registration fees. All EVs sold till December 31, 2026 will be exempted from road tax and registration feed impositions.

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While the exemption is clear for all electric vehicles, there is a small advantage for electric buses. Electric buses operated by the Telangana State Road Transport Corporation will take indefinite benefit from the tax waiver. On the other hand, electric buses used for industries and employee transportation will benefit from the tax waiver till the end of 2026, like in the case of other EVs. 

"In Telangana, we are carrying out programs to bring awareness among the people by bringing changes and additions in terms of the transport department. We have brought this policy to avoid pollution in Hyderabad like Delhi", wrote Ponnam Prabhakar in a post on X social media platform, announcing the policy. Telangana now joins Uttar Pradesh and Tamil Nadu as the third state to offer a full road tax waiver for EVs in India.

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The newly-introduced scheme will surely boost the sale of electric vehicles in the state as it will ensure to significantly reduce the ownership costs of new electric vehicles across segments. Unlike other EV policies that have barriers based on the battery capacity or segment that they play in, the Telangana EV policy doesn’t impose any barriers and offers a 100% waiver to the sale of new electric vehicles across segments. Furthermore, we firmly believe that government bodies should also promote the sale of hybrid vehicles with such policies, like the Uttar Pradesh government which announced 0% road tax on hybrid vehicles. 

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