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Delhi govt withdraws road tax on battery operated vehicles

The amount of road tax depends on the cost of the vehicle and the fuel it uses. Currently, a road tax of 4% is levied on a petrol car that costs up to Rs 6 lakh, and the tax increases to 12.5% for a diesel car that costs upwards of Rs 10 lakh.

By: Express News Service | New Delhi | October 12, 2020 3:15:16 am
Delhi govt’s EV policy aims to increase electric vehicles on city roads.

Anyone buying battery operated or electric vehicles in the city will not have to pay road tax anymore. The Delhi government’s transport department issued the notification announcing the exemption from October 10, fulfilling a proposal made by the government as part of the Delhi Electric Vehicle Policy 2020 earlier this year.

The amount of road tax depends on the cost of the vehicle and the fuel it uses. Currently, a road tax of 4% is levied on a petrol car that costs up to Rs 6 lakh, and the tax increases to 12.5% for a diesel car that costs upwards of Rs 10 lakh.

The government has also sought suggestions from people regarding the exemption on the registration fee of vehicles.

The policy, which was announced last month, aims to increase the number of electric vehicles on city roads in the coming years by creating infrastructure for charging and offering incentives to vehicle owners to buy electric vehicles so that sales of vehicles using petrol or diesel dips. The policy aims to register 5 lakh electric vehicles in the city by 2024.

As per the notification issued by the Transport Department, the rules issued in the policy for the exemption of registration fee have been opened for public opinion.

The gazette says, “…the said draft will be taken into consideration after expiry of a period of three days from the date on which the copies of this notification as published in the Gazette of Delhi are made available to the public. Objections or suggestions… should be addressed to Secretary-cum-Commissioner (Transport), Government of National Capital of Delhi, Transport Department…”

CM Arvind Kejriwal called the move a step towards a pollution-free Delhi. “Another crucial step towards ensuring a pollution-free Delhi. This incentive-based policy will encourage large scale adoption of electric vehicles, and bring us closer to fulfilling our dream of making Delhi the EV capital of India,” he tweeted.

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