BHUBANESWAR: The State government on Saturday announced 100 per cent (pc) exemption of motor vehicle tax and registration fees for buyers of all types of battery operated vehicles, including the electric vehicles (EVs).
As per a notification issued by the Commerce and Transport department, the exemption will be applicable up to December 31, 2025.
The Centre had earlier amended the Central Motor Vehicle Rules, 1989 in which the battery-operated vehicles have been exempted from payment of fees for issue or renewal of registration certificate and assignment of new registration mark.
The State government has also introduced the Odisha Electric Vehicle Policy, 2021 to encourage faster adoption of EVs and under the policy guideline, it has extended a lot of incentives for the purchasers, manufacturers of EVs batteries and charging stations.
Principal Secretary of Commerce and Transport department Madhu Sudan Padhi said as the State aims to achieve adoption of 20 pc battery-operated electric vehicles in all segments by 2025, the 100 pc exemption on motor vehicles taxes and registration fees for the policy period will encourage people to buy EVs.
As per the new policy approved by the State Cabinet on August 27, people buying two-wheeler will get an incentive of 15 pc on the value of the vehicle subject to a maximum of Rs 5,000 while three-wheeler buyers will get an incentive of up to Rs 10,000.
The four-wheeler buyers will get an incentive up to Rs 50,000. Electric bus owners will be provided an incentive of 10 pc up to Rs 4 lakh and Rs 30,000 for transport vehicles during the four-year policy period.
The EVs have immense advantages due to eco-friendliness, cheaper fuel cost, lower maintenance expenses, energy-efficiency and increased safety.
Plans are also afoot to generate an investment of Rs 15,000 crore in EV and component manufacturing, battery manufacturing/assembly enterprises and charging infrastructure equipment manufacturing in the State.