Tamil Nadu: 100% Motor Vehicle Tax Exemption to EVs
The State Government of Tamil Nadu recently notified that it will grant 100% motor vehicle tax exemption for Electric Vehicles. Earlier, the State Government had issued orders for 50% concessional rate to EV taxes. It has now been made to 100%.
- The State Government has exempted taxes to both transport and non-transport vehicles.
- The State Government is already providing incentives to attract investments. The Tamil Nadu Government provides 100% GST reimbursement and 50% capital subsidy to the EV manufacturing units. The plan is to set up an EV park through these incentives. The park is to be set up in 300 acres of land.
Electric Vehicle Park
The Electric Vehicle Park is expected to create 150,000 jobs in the state. The State Government recently signed Memorandum of Understandings worth Rs 30,664 crores. Of this, Rs 3,500 crores are from auto sector. The plan is to set up the park through the MoUs signed.
The park will be first of its kind in India.
The state currently produces 4.82 million two-wheelers and 1.71 million passenger vehicles. It accounts to 35% of auto component production of the country.
In 2019, the Tamil Nadu Government announced the EV Policy. Under the policy, the State Government had planned to provide subsidies to both supply side and demand side to promote Electric Vehicles. The policy also covers electric motors, cell manufacturing, EV power trains and battery management.
Several states of India are now focusing on Electric Vehicles. The Delhi Government, in August 2020, released the Electric Vehicle Policy, 2020. The EV policy of Delhi Government also focuses on giving incentives and subsidies to Electric Vehicles. The State Government of Karnataka approved the Electric Vehicle and Energy Storage Policy, 2017. The State Government of Maharashtra proposed to exempt EVs from road taxes. Also, it has proposed to provide maximum subsidy of Rs 1 million per charging station to the first 250 charging stations being set up in the state. And, the Maharashtra State Government had agreed to provide 15% subsidy to the first one lakh registered EVs.
Government of India measures
The GoI launched National Electric Mobility Mission Plan, 2020 to improve fuel security through promotion of electric and hybrid vehicles in the country. Also, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) was launched. FAME provides incentives to purchases of electric vehicles. Currently Phase II of FAME is under implementation.