Centre Asks State to Minimise Road Tax on Electric Vehicles - TyreCafe

by Editor News

The letter, dated July 17, instructed to initiate ministry's notification by registering the Electric Vehicles for the public transportation without any obstruction.


In order to bring electric vehicles into the mainstream automobile industry in India, the central government has proposed the removal of any permit obligation from the electric vehicles (EVs) to the state government. This initiative has been taken to increase the mainstream market of the EVs in the Indian automobile industry and its utilization.

Abhay Damle, the joint secretary of ministry of Ministry of Road Transport and Highway (MoRTH), signed a letter which was forwarded to major secretaries and major transport commissioners of all the states. The letter, dated July 17, instructed to initiate ministry's notification by registering the EVs for the public transportation without any obstruction.

"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.

The ministry has given choice to the state in between minimizing the road tax for the EVs or free the EVs from paying road tax for registration. It has also been suggested to provide subsidies on the EVs being used as transport vehicles under FAME-ll scheme. This will help reduction of the cost of acquisition of these no pollution vehicles. There were many other measures taken by MoRTH for increasing the demand of the EVs like distinct identity green plate for giving a label of being eco friendly or a zero emission distinct identity, free the EVs from the permit obligations and also providing license to the age group of 16 to 18 years for e scooters. The central has also requested state to provide the suitable policies for the EVs and taking care of details like allotment of charging infrastructure in malls, offices, housing societies, parking space, etc.


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