Telangana Government Grants 100% Tax Exemption For Electric Vehicles Until 2026

In a major step toward promoting eco-friendly transportation, the Telangana government has announced a 100% exemption on road tax and registration fees for electric vehicles (EVs) across the state. This initiative aims to reduce air pollution, particularly in urban areas such as Hyderabad, and encourage the widespread adoption of electric vehicles.

Tax Exemption To Drive EV Adoption

Recently, the government issued an order which clarified that the exemption would continue for the next two years until 31st December, 2026. This is part of a bigger strategy of the Telangana government towards bringing forward a cleaner and more eco-friendly transport system while at the same time thwarting growing concerns over the air quality.

Transport Minister Ponnam Prabhakar said the new policy will make electric vehicles affordable and accessible to a wider number of consumers from individual to business.

Who Will Benefit?

The 100% tax exemption applies to all electric vehicles, be it private or commercial categories: Two and four-wheelers: This also includes personal as well as commercial cars, motorcycles, amongst others.

Three wheelers: Electric autorickshaws and goods carriers fall under this.

Electric buses: There are special provisions for public as well as the private sector bus fleet, as part of government initiatives to develop public transport systems.

Electric light goods carriers: Electric vehicles intended for carrying goods-carrying three-wheelers, electric tractors, and others of similar nature.

The exemption is available for the private owners of cars, two-wheelers, and commercial passenger vehicles like taxis, provided these vehicles are bought and registered within the state of Telangana.

Electric Buses Special Provisions

Recognizing the importance of switching public transportation to more eco-friendly modes, the Telangana government has announced special arrangements for electric buses. The state government will abolish road tax and registration for buses operated by the TSRTC from now onwards. This is one step forward toward establishing more eco-friendly and efficient public transportation in the state.

Private industries that deploy electric buses for the exclusive transport of employees shall enjoy the exemption from national internal revenue, regardless of the number of buses they register. The privilege is allowed to take effect until December 31, 2026.

Government’s Vision For Sustainable Transport

This new policy of Telangana would be an important part of its larger effort toward making a green transport system with reduced pollution, especially in Hyderabad and all across the cities of Telangana. The deregulation of tax on electric vehicles would support them to sell more cheaply, which would bring their use along with the reduction in pollution.

Minister Prabhakar emphasized that the aim of sustainable goals in Telangana is clearly realized while meeting with electric vehicles promoters. He also said the environmental issue is being countered and quality life of its residents increases due to a reduction of pollution in the air and fossil fuel reliance.

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