Centre to states: Waive road tax and permit requirement for EVs

July 19, 2019 7:07 AM

In a letter to the states, Abhay Damle, joint secretary at the ministry of road transport and highways, stressed on the need to formulate preferential policies for adoption of EVs through incentives like land allotment for charging infrastructure, mandating charging points in malls, housing societies and office complexes.

 Waive road tax, permit requirement,  EV, electric vehicles, eco-friendly vehicle, economy news, ministry of road transport and highways, FAME scheme, pollution,  oil import, niti aayog The ministry had in October 2018 exempted EVs from the requirement of passenger transport permit via a notification.

By Pritish Raj

The Centre has pulled up the states for not exempting the electric vehicles (EVs) from the requirement of passenger transport permit and waiving off the road tax, saying this acts as a barrier against the proliferation of EVs. The government has given time till August 31 for states to adopt the measures and submit the action taken to promote the eco-friendly vehicles.

In a letter to the states, Abhay Damle, joint secretary at the ministry of road transport and highways, stressed on the need to formulate preferential policies for adoption of EVs through incentives like land allotment for charging infrastructure, mandating charging points in malls, housing societies and office complexes. Other incentives as advised by the Centre include waiver of toll charges and parking fee as well as priority parking slots.

The ministry had in October 2018 exempted EVs from the requirement of passenger transport permit via a notification. “However, most of the States have not implemented the notification and are still insisting for permits for EVs,” the letter read, adding states are requested to operationalise the earlier notification by registering EVs without imposing any permit requirement. Stating that waiving off the road tax will reduce the vehicle’s cost of acquisition, the ministry advised the states to consider waiving the road tax on EVs to the maximum possible extent.

The government has been pushing adoption of electric vehicles to reduce pollution and ballooning oil imports. The Niti Aayog has proposed converting traditional three- and two-wheelers to electric by 2023 and 2025, respectively. Besides, it has rolled out a host of sops for EVs such as the FAME scheme, which provided subsidies on purchasing such vehicles. Other measures include fitment of green registration plates to ensure EVs get waivers from toll charges and parking fee, permit of exclusive access to EVs at congested zones and driving licence approval to the age group of 16-18 years to drive e-scooters.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1CBIC starts special drive to clear pending GST refund claims by month-end
2Wheat procurement grows by 30 pc to 366.61 lakh tn this season
3Govt considering subsidy to offset rise in global prices of P&K fertilisers’ raw material