To promote the growth and quicker adoption of electric vehicles, the Odisha government has offered a 100% exemption for motor vehicle tax and registration fees on state electric vehicles.
Under the Odisha Motor Vehicles Taxation Act, the State Government announced an exemption of 100% from motor vehicle taxes and registration fees for battery-operated vehicles, which will last until 2025. Minister for Transport Padmanav Behera has stated the Department of Transport has submitted to the Government a proposal to allow e-vehicle subsidies to attract consumers.
On Saturday, the Department of Commerce and Transport Odisha stated in a communication that the state has given 100 percent exemptions from motor vehicle charges and registration charges for all sorts of battery-driven vehicles. “Using the powers conferred by clause (ii) of sub-section (1) of section 15 of the Odisha Motor Vehicles Taxation Act, 1975, the state government has allowed a 100% exemption on Motor Vehicle Tax and Registration Fees for EVs,” reads the tweet by Odisha Commerce and Transport Department.
The exemption will apply during the State EV policy period until 31 December 2025. Odisha Electric Vehicle Policy 2021 was announced by the state government on 2 September this year.
With the assistance of NITI Aayog, the Odisha EV policy was introduced to facilitate customers to purchase electric vehicles. The State administration recommended extending the incentives both for consumers and for manufacturers to promote demand and manufacturing, under the policy guidelines. The policy proposed to extend financial incentives for the consumers, manufacturers of electric vehicles, batteries, and developers of charging infrastructures as well.
The State government is offering consumers a 15 percent subsidy on the basic price of EV, as set out in the Odisha EV policy, which is operational for five years. Consumers of electric two-wheelers will be eligible for up to a 5,000 incentive, while those of electric three and four-wheelers will be eligible for up to 10,000 and 50,000 in incentives, according to their vehicle type.
There will also be interest-free loans available to state government employees who want to buy electric vehicles. The strategy also calls on municipal authorities to provide electric automobiles with subsidized parking.
These incentives will apply in addition to the consumer advantages under the FAME-II scheme of the central government. The goal is to make electric vehicles more accessible to the general public while still keeping up with the growing demand for low-emission transportation options.