Electric car owners in India spared from paying registration certificate fees

Electric vehicle owners in India have yet another reason to rejoice as the government has offered one more exemption to those who have or are planning to switch to electric vehicles. The Centre has issued a notification saying EV-owners do not need to pay registration certificate fees anymore.

Electric vehicles are now exempted from registration certificate fees in India. (File photo) (REUTERS)
Electric vehicles are now exempted from registration certificate fees in India. (File photo)

On Tuesday, the Ministry of Road Transport and Highways issued the notification. It exempts all battery-powered electric vehicles from the payment of fees for issue or renewal of registration certificate. The ministry has also said that battery operated vehicles are exempted from the payment of fees for assignment of new registration marks.

The decision comes as part of the government's efforts to encourage more people to switch to electric vehicles amid rising fuel costs, as well as bring down vehicular pollution.

Despite Centre's initiatives to promote use of electric vehicles by keeping domestic taxes low, offering incentives through the FAME II scheme, and help to install EV charging stations for develop the EV ecosystem in the country, EV adoption in India has been slower than what the government would have liked. Challenges like proper infrastructure remain, while costs of electric cars remain on the higher side compared to electric two-wheelers.

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Last week, US-based electric car manufacturer Tesla triggered a debate on high import duties imposed for EVs in India. The debate saw carmakers in India divided in their opinion whether the government should offer exemption in an effort to keep the cost of such vehicles down and make them more affordable for the mass.

First Published Date: 04 Aug 2021, 08:55 AM IST
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