Extend exemption of life tax on EVs, urges AP Chambers Chief Secretary
VIJAYAWADA: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) requested Chief Secretary KS Jawahar Reddy for the extension of life tax exemption on electric vehicles.
In a letter written to the Chief Secretary on Wednesday, the Andhra Pradesh Chambers referring to the 12 per cent life tax on Electric Vehicles (EVs), both on passenger and two-wheelers from June 7, 2023, mentioned that the life tax had an unintended impact of significantly slowing down the registration of electric vehicles in the State.
The Andhra Pradesh Chambers stated that imposing road tax on electric vehicles will inevitably escalate the ownership costs, which may hamper sales and, in turn, affect the viability of dealerships. This could lead to job losses and possibly encourage prospective customers to purchase EVs from neighbouring states offering exemptions or subsidies, said the Andhra Pradesh Chamber in its letter.
AP Chambers opined that offering exemptions from registration fees, road tax and other levies can significantly reduce the initial cost of electric vehicles and encourage potential buyers to make the transition.
The Andhra Pradesh Chambers of Commerce and Industry Federation mentioned that an extended waiver of the road tax will not only encourage quicker adoption of electric vehicles but will also bolster the State’s transition to sustainable transportation.