Delhi government reduces VAT on e-vehicles

In a bid to encourage the use of electric vehicles, the Delhi government has reduced value-added tax (VAT) on EVs from 12.5 per cent to five per cent. The government has also exempted EVs from road tax.

Earlier this month, the Karnataka government also eliminated all taxes on electric vehicles to encourage people to buy these cars and bikes.

The Delhi government has also doubled the subsidies for e-rickshaws. Deputy chief minister Manish Sisodia said the one-time fixed subsidy for e-rickshaws would be raised from Rs15,000 to Rs30,000.

In the current fiscal, the government has granted a subsidy of Rs4.97 crore to 3,709 owners of battery-operated vehicles and e-rickshaws.
According to the Society of Manufacturers of Electric Vehicles, there are just 65,000 electric two-wheelers and cars in Delhi. The state government can boost these numbers by extending support to the industry by developing charging stations.