The Telangana government has announced a complete exemption from road tax and registration fees for electric vehicles (EVs), a significant step towards promoting sustainable transportation and combating air pollution in urban centers like Hyderabad. This initiative is part of the state’s broader effort to encourage eco-friendly mobility and reduce its carbon footprint.
The exemption will remain in effect for two years, until 31 December 2026, according to a recently issued government order. Transport Minister Ponnam Prabhakar emphasized that the policy is aimed at making electric vehicles more affordable and accessible, fostering their adoption across various categories.
Who Benefits?
The tax exemption applies to a wide range of electric vehicles, including:
- Two-wheelers and Four-wheelers: Available for both personal and commercial use.
- Three-wheelers: Covers autorickshaws and goods carriers.
- Electric Buses: Benefits extend to both public and private sectors.
- Electric Light Goods Carriers: Includes three-wheeled goods vehicles, electric tractors, and similar models.
This incentive is applicable to vehicles purchased and registered within Telangana, ensuring that private car and two-wheeler owners, as well as commercial operators like taxi services, can take advantage of the reduced upfront costs.
Special Focus on Electric Buses
To further boost sustainable transportation, the government has introduced special provisions for electric buses.
- Electric buses operated by the Telangana State Road Transport Corporation (TSRTC) will receive indefinite exemptions from road tax and registration fees.
- Buses owned by private industries, exclusively used for employee transport and not for commercial purposes, will also enjoy the exemptions until 31 December 2026, regardless of the number of buses registered.
Policy Goals
This initiative aligns with Telangana’s ambitious electric vehicle policy, which aims to foster an eco-friendly transport ecosystem while addressing the pressing issue of air pollution in cities like Hyderabad.
By reducing the upfront costs of EV ownership, the government hopes to make them a more viable option for both personal and commercial use. Transport Minister Prabhakar highlighted the importance of such measures in achieving the state’s sustainability objectives and tackling environmental challenges effectively.
With this exemption, Telangana positions itself as a leader in green mobility, setting an example for other states in India to follow.
