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Odisha government aims to promote faster adoption of electric vehicles in the state.
Odisha government aims to promote faster adoption of electric vehicles in the state.

Make EVs cheaper: Odisha exempts MV tax, registration fees for electric vehicles

  • With a 100 per cent exemption on MV tax and registration fees, the Odisha government aims for a faster promotion of battery electric vehicles in the state.

Odisha government on Saturday has announced that it will completely exempt motor vehicle (MV) tax and registration fees for electric vehicles. The step has been taken in an attempt to encourage faster adoption of electric vehicles.

(Also Read: Haryana's own electric vehicle policy to be finalised within a month)

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Odisha Commerce and Transport Department on Saturday stated in a release that the state government has allowed 100 per cent exemption of motor vehicle taxes and registration fees for all types of battery-operated vehicles. “Using the powers conferred by clause (ii) of sub-section (1) of section 15 of the Odisha Motor Vehicles Taxation Act, 1975, the state government has allowed a 100% exemption on Motor Vehicle Tax and Registration Fees for EVs," reads the tweet by Odisha Commerce and Transport Department.

The exemption will be applicable during the whole period of the state's EV policy, till December 31, 2025. The state government earlier this year announced Odisha Electric Vehicle Policy 2021 on September 2. 

The Odisha EV policy was formed with advice from NITI Aayog, aiming to encourage consumers to buy electric vehicles. Under the policy guideline, the state government proposed to extend incentives for both consumers and manufacturers in an attempt to boost demand and manufacturing. The policy proposed to extend financial incentives for the consumers, manufacturers of electric vehicles, batteries and developers of charging infrastructures as well.

As per the Odisha EV policy effective for five years, the state government will offer the consumers a 15 per cent subsidy on the base price of the EV. The electric two-wheeler consumers will receive a maximum of 5,000 incentives, while electric three and four-wheeler consumers will receive incentives of 10,000 and 50,000 respectively.

These incentives will be applicable over and above the benefits available to the consumers under the central government's FAME-II scheme. The move is to ensure the electric vehicles become more affordable to the consumers and it comes in line with the increasing preference towards zero-emission mobility solutions.

  • First Published Date : 31 Oct 2021, 10:50 AM IST

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