The Society of Manufacturers of Electric Vehicles (SMEV) has called on the government to establish a consistent nationwide policy regarding the exemption of road taxes for Electric Vehicles (EVs). SMEV emphasized the importance of a uniform and favorable policy environment to promote the adoption of clean and sustainable transportation in India.
In a letter to Union Road Transport and Highways Minister Nitin Gadkari, SMEV’s Chief Evangelist, Sanjay Kaul, requested the implementation of a unified road tax exemption policy, highlighting its crucial role in encouraging the uptake of EVs for the benefit of both the environment and the economy.
Kaul pointed out that the recent decision by the Ministry of Heavy Industries to reduce the subsidy component during the FAME II scheme makes the government’s input on road tax exemption even more pertinent and critical. He emphasized that road tax and registration fees are significant factors influencing consumer choices when it comes to EVs.
These fees can either incentivize consumers to choose greener options or deter them due to higher upfront costs, especially considering EVs’ advanced battery systems. The variation in road tax policies among states in India is identified as a major obstacle to the widespread adoption of EVs.
While some states have already waived road tax and registration fees for EVs, others have not, creating confusion and discouraging potential EV buyers. Kaul highlighted that the inconsistent tax policies across states are not only confusing but also hindering the progress of the EV industry. He called for a unified and favorable framework that can accelerate India’s transition to electric mobility.
By issuing a nationwide advisory for a uniform road tax exemption policy for EVs, the government has the opportunity to lead India towards a cleaner and more sustainable future.
Sanjay Kaul has been appointed to assist the EV sector in overcoming the challenges it has faced since last year, particularly regarding non-compliance with the FAME II scheme’s policy details, affecting almost all Original Equipment Manufacturers (OEMs) in the sector.