2018-09-03
Electric car may save you over Rs 70,000 in road tax

An exemption on road tax of up to 100 per cent, incentives to replace your old vehicle and charging stations across the city — the Delhi government is planning a host of measures to make electric vehicles popular in the capital.

The government’s comprehensive electric vehicle policy is now ready and will be made public very soon, said state transport minister Kailash Gahlot.

Though Gahlot didn’t mention the quantum of exemption on road tax for electric vehicles, he said it will be “substantial”. “Major incentives will be given for buying electric vehicles,” Gahlot told TOI, adding that infrastructure across the city to support electric mobility is also in the works.

Since prices of electric vehicles range between Rs 8 lakh and Rs 12 lakh, you could save upwards of Rs 70,000 in road tax if you buy one such vehicle for, say, Rs 10 lakh. Road tax currently stands at 7 per cent for vehicles costing Rs 6 lakh or more.

Sources said major incentives are being planned for those who want to replace their old diesel or petrol vehicles with electric ones.

A meeting chaired by Gahlot was held on August 27 to discuss steps that need to be taken to provide a robust support infrastructure in the city for promoting electric mobility. “All stakeholders, including the power grid, discoms and Indian Oil Corporation, were present,” Gahlot said. “We are planning charging stations across the city like the way we have petrol and CNG stations,” he said. The meeting was also attended by senior Delhi government officials, including those from the transport department.

In March, the Delhi government had announced the formulation of its electric vehicle policy in the Budget. According to sources, there are also plans to provide subsidy to those opting for electric vehicles as these are more expensive than diesel or petrol ones at present.

“We have already seen many people opting for CNG- run cars, which are more environment-friendly. Electric vehicles, however, are cleaner than CNG, and that is why we are planning to give incentives to those buying them,” a government official said. An exemption of 50 per cent on road tax for CNG-run vehicles was also announced in the Budget. Sources said a cabinet note has been prepared on it and will be presented before the cabinet very soon. The incentives and exemptions on electric vehicles will be higher than those on CNG vehicles.

Source- The Times of India