UP: Govt to exempt EV buyers from paying tax & registration fees

UP: Govt to exempt EV buyers from paying tax & registration fees
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LUCKNOW, Uttar Pradesh: With an aim to promote electric vehicles (EVs) in the state, the Government of Uttar Pradesh has decided to give exemption to EV buyers from paying road tax and registration fees for three years starting from October 14, 2022, as per the official statement issued on Friday.

The exemption will be valid for five years starting from when EV is manufactured in Uttar Pradesh. In line with this decision, RTOs in all the districts have been directed to comply with and implement the government directives with immediate effect.

As per the revised notification issued by L Venkateshwarlu, Principal Secretary, under the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022, a 100 per cent exemption will be given on the EVs sold and registered between October 14, 2022, and October 13, 2025. Additionally, in the fourth and fifth year of the notified period of exemption outlined in the Electric Vehicle Policy, that is between October 14, 2025, and October 13 2027, a 100 per cent rebate will be given on EVs manufactured, sold and registered in the state.

Under the abovementioned policy, the definition of EV includes all automobiles that use electric motors and are powered by batteries, ultracapacitors or fuel cells. As per this definition, EVs include two-wheelers, three-wheelers, and four-wheelers, Strong Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), and other Fuel Cell Electric Vehicle (FCEV).

This move will benefit 3,997 EV owners in Agra who have been charged road tax and registration fees. Till date, around 11,340 EVs are registered with the Agra Divisional Transport Office (RTO), of which 3,997 are EVs, including 437 are e-rickshaws, and 30 are cars. The rest are the two-wheelers which have been bought before October 14, 2022.

These exemptions are being provided in addition to the subsidy provided by central government. With the help of these exemptions, the cost of two-wheelers will come down by ₹15,000 to ₹20,000 on the road, and the cost of cars will come down by ₹1 lakh.

As per the mandate of the policy, a 15 per cent subsidy will be provided on the factory price of the EV bought in the territorial limits of the state. Apart from that, subsidy of ₹5,000 per vehicle will be provided on the first two lakh electric two-wheelers, upto ₹12,000 on the first 50,000 electric three-wheelers and upto ₹1 lakh per vehicle on the first 25,000 EV cars. Similarly, a subsidy of ₹20 lakh per e-bus will be given on the first 400 buses bought in Uttar Pradesh, and 1,000 e-goods carriers will be provided with a 10 per cent subsidy on the factory price of the e-goods carriers of upto 1,00,000 per vehicle.

The government is also encouraging its employees to buy electric vehicles by allowing them to take an advance.

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