News, 21 April 2025
Electric vehicle (EV) tax breaks of considerable magnitude have been announced by the Gujarat government. Harsh Sanghavi, the minister of state for home and transportation, announced that the state would exempt completely electric vehicles from paying 5% of the tax until March 31, 2026.
The effective tax rate on EVs will drop to just 1% as a result of this action, making them significantly more affordable for citizens.
By providing private companies with incentives and subsidized electricity rates, the government intends to encourage setting up of charging stations. Furthermore, significant investments, such as the construction of lithium-ion battery manufacturing facilities, are being promoted in the EV supply chain. In Ahmedabad, a facility valued at Rs 7,300 crore is now being developed.
