The Haryana Cabinet has approved a complete exemption from motor vehicle tax for new battery electric vehicles (BEVs) priced up to ₹30 lakh (ex-showroom), significantly strengthening the state’s incentives for electric mobility. Electric vehicles priced above ₹30 lakh will be eligible for a 50% exemption, while the existing tax benefit for CNG vehicles will remain unchanged.
The decision approved by the Cabinet chaired by Chief Minister Nayab Singh Saini, implements announcements made in the state’s 2026-27 Budget and marks a major revision to Haryana’s electric vehicle incentive framework.
Complete Tax Waiver
Under the revised policy, buyers of battery electric vehicles costing up to ₹30 lakh will no longer have to pay motor vehicle tax at the time of registration. Premium EVs priced above the threshold will continue to receive a 50% tax exemption.
The move represents a significant enhancement over Haryana’s earlier EV policy, under which battery electric vehicles were eligible for only a one-time 20% exemption on motor vehicle tax. With the latest decision, that benefit has been increased to a full exemption for mass-market electric vehicles. The existing one-time 20% motor vehicle tax exemption available on CNG vehicles will continue without any change.
The revised tax structure is expected to benefit a large proportion of electric cars currently sold in India, many of which fall below the ₹30 lakh price point, while also offering partial tax relief to buyers of premium electric vehicles.
Special Tax Rebate
In a separate measure, the Cabinet also approved a 1% rebate on motor vehicle tax for new non-transport vehicles priced up to ₹20 lakh (ex-showroom) when registered in the name of a woman. The incentive is aimed at encouraging greater ownership of passenger vehicles among women.
The latest measures are intended to accelerate the adoption of electric vehicles in Haryana by making ownership more affordable. They are also expected to make the state’s EV incentive regime one of the more competitive in the country.
Lower registration taxes could also help curb the practice of vehicle buyers registering their cars in neighbouring states that offer lower tax rates, enabling Haryana to retain a larger share of vehicle registrations and the associated revenue. The revised policy comes as states increasingly compete through tax incentives to drive EV adoption and attract registrations, alongside the Centre’s broader push towards electric mobility.