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Telangana Govt announces 100% exemption on road tax, registration fees for electric vehicles

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In a bid to accelerate the adoption of electric vehicles (EVs) and foster sustainable transportation, the Telangana government has introduced a 100% exemption on road tax and registration fees for all EVs. This initiative, aimed at reducing air pollution and promoting eco-friendly transport options, will be in effect until December 31, 2026.

Key Details of the Policy

The exemption applies to a wide range of electric vehicles, including:

1. Two-wheelers and Four-wheelers: Both private and commercial vehicles are covered under the exemption.

2. Three-wheelers: Electric autorickshaws and goods carriers benefit from the exemption.

3. Electric Buses: Special provisions are made for both public and private sector electric buses.

4. Electric Light Goods Carriers: This includes three-wheeled goods vehicles, electric tractors, and similar vehicles.

For private cars, two-wheelers, and commercial passenger vehicles such as taxis, the exemption will be available for vehicles purchased and registered within Telangana during the policy period.

Special Provisions for Electric Buses

The government has introduced specific provisions for electric buses to boost their use in both public and private transportation. Electric buses operated by the Telangana State Road Transport Corporation (TSRTC) will receive an indefinite exemption from road tax and registration fees.

In addition, private companies that operate electric buses for employee transport purposes (excluding commercial use) will also be exempt from these charges until December 31, 2026, regardless of the number of buses registered.

Government’s Objective

Transport Minister Ponnam Prabhakar emphasized that this move is part of the Telangana government’s broader efforts to create an eco-friendly transport system and significantly reduce pollution, particularly in urban areas like Hyderabad. By making electric vehicles more affordable through tax exemptions, the government aims to encourage wider adoption of EVs for both personal and commercial use.

Minister Prabhakar further noted that promoting the transition to electric vehicles is crucial for achieving Telangana’s sustainability targets and addressing the growing environmental challenges posed by pollution in urban areas.

This policy aligns with the state’s commitment to reducing its carbon footprint while ensuring that EVs become a more accessible and attractive transportation option for residents and businesses alike.

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