UP Govt exempts road tax and registration fees for electric vehicles

The Uttar Pradesh government has decided to do away with road tax and registration fees on its purchase for three years, effective from October 14, 2022, according to statement released on 3rd March 2023.

The exemption will be valid for five years on the purchase of electric vehicles manufactured in the state itself. According to the revised notification issued by Principal Secretary L. Venkateshwarlu, as per the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022, 100 per cent tax exemption will be given on electric vehicles (EV) sold and registered in Uttar Pradesh from October 14, 2022, to October 13, 2025. Moreover, in the fourth and fifth year of the effective period of the Electric Vehicle Policy notified on October 14, 2022, i.e. from October 14, 2025, to October 13, 2027, a 100 per cent rebate will be given on EVs manufactured, sold and registered in the state.

Clarification has also been given regarding the meaning of electric vehicles.

According to this, EV refers to all automobiles using electric motors that are powered by batteries, ultracapacitors, or fuel cells.

These include all two-wheelers, three-wheelers, and four-wheelers, Strong Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), and Fuel Cell Electric Vehicle (FCEV).

The exemption by UP Government is in addition to the subsidy provided by the Central Government on the purchase of electric vehicles.

Together these reliefs provided by the Central Government and the State Government will reduce the cost of two-wheelers by ₹ 15,000 to ₹ 20,000 on-road and cars by up to ₹ 1 lakh.

According to the policy, a 15 per cent subsidy will also be given on the factory price of electric vehicles purchased in the state.

In this, a subsidy of ₹ 5,000 per vehicle will be given for the first two lakh electric two-wheelers, a maximum of ₹ 12,000 for the first 50,000 electric three-wheelers, and up to ₹ one lakh per vehicle for the first 25,000 electric four-wheelers.

At the same time, a subsidy of up to ₹ 20 lakh per e-bus will be given on the first 400 buses purchased in the state.

A maximum of 1000 e-goods carriers will be given a subsidy of 10 per cent on the factory price for the purchase of e-goods carriers up to 1,00,000 per vehicle.

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