Uttar Pradesh to exempt EV buyers from tax, registration fees for three years

The government of Uttar Pradesh (UP) has decided to do away with the road tax and registration fees on the purchase of electric vehicles, for three years from October 14, 2022. The exemption will be valid for five years on the purchase of electric vehicles manufactured in the state. The state government has issued orders to the RTOs of all the districts to ensure compliance with the instructions with immediate effect.

Apart from providing a 100 per cent tax exemption on electric vehicles (EV) sold and registered in the state from October 14, 2022, to October 13, 2025, in the fourth and fifth year of the effective period, a 100 per cent rebate will be given on EVs manufactured, sold and registered in the state.

The notification issued by the Uttar Pradesh government also provides a clarification on the meaning of electric vehicles. It mentions that EV refers to all automobiles using electric motors that are powered by batteries, ultracapacitors, or fuel cells. These include all two-, three-, and four-wheelers, Strong Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), and Fuel Cell Electric Vehicle (FCEV).

This decision will provide a sign of relief to 3,997 EV owners in Agra who have been charged taxes and the registration fee between October 14, 2022. Out of 11340 EVs registered with the Divisional Transport Office (RTO) of Agra, 3997 vehicles have been bought from October 14, 2022, till now. This includes 437 e-rickshaws, 30 cars, and the rest two-wheelers.

Additionally, the Central government provides subsidies on the purchase of electric vehicles. Together these reliefs provided by the Central and the state governments will reduce the cost of two-wheelers by ₹15,000 to ₹20,000 on-road and cars by up to ₹1 lakh.