CHANDIGARH: In a major push for clean and sustainable transportation, the Haryana Cabinet has approved a 100 per cent exemption from Motor Vehicle Tax at the time of registration for new pure electric and battery-operated two-wheelers, three-wheelers (autos and e-rickshaws), and four-wheelers with an ex-showroom price of up to Rs 30 lakh purchased and registered in the state.
Electric vehicles priced above Rs 30 lakh will be eligible for a 50 per cent tax exemption.
At present, the state grants a one-time 20 per cent rebate on Motor Vehicle Tax for the registration of electric, battery-operated and CNG vehicles. The existing 20 per cent rebate for CNG vehicles will continue without any change.
The decision fulfils the announcement made by Chief Minister Nayab Singh Saini in the Haryana Budget 2026-27, presented on March 2, to provide greater incentives for the adoption of electric vehicles and accelerate the transition towards cleaner and more environment-friendly mobility across the state.
With the latest approval, the existing concession for eligible electric vehicles has been enhanced to a full exemption from Motor Vehicle Tax for new registrations of pure electric and battery-operated two-wheelers, three-wheelers (autos and e-rickshaws), and four-wheelers with an ex-showroom price of up to Rs 30 lakh. Vehicles priced above Rs 30 lakh will receive a 50 per cent exemption.
The existing 20 per cent rebate in one-time Motor Vehicle Tax for CNG vehicles will continue as before.
The decision has been taken under the provisions of the Haryana Motor Vehicles Taxation Act, 2016, under which the state government is empowered to prescribe the rates of Motor Vehicle Tax for different categories of vehicles registered and operated in Haryana.
The enhanced tax exemption is expected to significantly encourage the purchase and registration of electric vehicles in the state by making them more affordable.
The initiative is also expected to reduce vehicular emissions, curb pollution, improve air quality and promote environmentally sustainable transport in Haryana.
The state government believes the measure will accelerate the adoption of electric mobility while reinforcing Haryana's commitment to green growth and a cleaner environment.
The Cabinet also approved a rebate in Motor Vehicle Tax for non-transport vehicles purchased and registered in the name of women in the state, provided the vehicles have an ex-showroom price of up to Rs 20 lakh.
Under the decision, an exemption equivalent to 1 per cent of the vehicle's ex-showroom price will be granted for the registration of new non-transport vehicles in the name of women in Haryana.
The decision is aimed at promoting self-reliance among women. The state government said the tax rebate would serve as an incentive for women to register vehicles in their own names, thereby encouraging their independence and greater participation in economic activities.
Under Section 3 of the Haryana Motor Vehicles Taxation Act, 2016, the state government specifies the rates of Motor Vehicle Tax applicable to all categories of vehicles registered and operated in the state.
At present, Motor Vehicle Tax on vehicles used for personal purposes is levied based on the vehicle's ex-showroom price.
As announced by the Chief Minister in the Budget Speech for 2026-27, a 1 per cent rebate in Motor Vehicle Tax is to be granted on non-transport vehicles purchased and registered in the name of women in the state, over and above the existing Motor Vehicle Tax.
However, the state government has now decided that this rebate will be available only for vehicles with an ex-showroom price of up to Rs 20 lakh.
