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Odisha Exempts Tax & Registration Fee For EV Buyers

EV Ultimo Team

31-10-2021

Odisha Exempts Tax & Registration Fee For EV Buyers

In a move towards advancing electric vehicles (EV), the Odisha Government has completely exempted road tax and registration fees for future EV buyers. Chief Minister Naveen Patnaik announced this policy of the State Government saying, "In a major boost to electronic vehicles (EV) in Odisha, the State Govt has announced 100% exemption on Motor Vehicle Tax & Registration Fees for EVs. This is applicable till Dec 31, 2025 for all types of Battery Operated Vehicles & will help achieve sustainable development."


Odisha Commerce and Transport Department on Saturday stated this The Centre had earlier revised 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 the new registration mark. Government of Odisha, Commerce & Transport Department posted on its Twitter-

"Using the powers conferred by clause (ii) of sub-section (1) of section 15 of the #OdishaMotorVehiclesTaxationAct, 1975, the state government has allowed a 100% exemption on #MotorVehicleTax and #RegistrationFees for EVs."


Here is how the Odisha government is rolling the initiative. These incentives will be applicable over and above the benefits available to the consumers under the central government's FAME-II scheme-


1. Principal Secretary of Commerce and Transport department Madhu Sudan Padhi said as the State aims to achieve the 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 help future EV buyers make the switch easily. 


2. 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.


3. As per the new policy approved by the State Cabinet on August 27, people buying two-wheelers 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.


4. 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.


5. 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.


This will lead to greater investment in the state, increased jobs, and the growth of industrial base in electric vehicle technology, supporting zero-emission mobility solutions in Odisha, India sooner than the rest of India.


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