Tamil Nadu govt plans to extend 100% road tax exemption for EVs till 2025,

The transport department has proposed the extend the tax waiver until 2025 for personal cars and two wheelers.

Chennai- The state transport department has proposed to extend 100 percent road tax exemption for electric vehicles for another three years. If approved, EVs will continue to cost 8 percent less. To promote sales of battery-operated vehicles, Tamil Nadu in the year 2008 fixed road tax for e-bikes as INR750 and for personal cars, owners had to pay 3 percent to 6 percent of the vehicle’s cost as tax.

Later, the government halved the tax amount and in 2019 waived off the tax completely up to December 2022.

With this deadline nearing, automobile showrooms started to advertise stating that this was the best time to buy EV’s as cost could go up from January. Against this backdrop, the transport department has proposed the extend the tax waiver until 2025 for personal cars and two wheelers.