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SMEV urges unified road tax exemption policy for EVs nationwide
Industry News- Sep 21,23
In a letter addressed to the Union Minister of Road Transport and Highways, Nitin Gadkari, SMEV emphasised the critical need for a stable and supportive policy environment to expedite the transition towards electric mobility in India.
The Society of Manufacturers of Electric Vehicles (SMEV) made a fervent appeal to the government, urging the formulation of a consistent nationwide policy for exempting Electric Vehicles (EVs) from road taxes. In a letter addressed to the Union Minister of Road Transport and Highways, Nitin Gadkari, SMEV emphasised the critical need for a stable and supportive policy environment to expedite the transition towards electric mobility in India.
In the letter, Sanjay Kaul, Chief Evangelist of SMEV, respectfully implored the government to consider the implementation of a unified road tax exemption policy for EVs, recognising its pivotal role in incentivising the adoption of eco-friendly and sustainable transportation solutions. Kaul emphasised the importance of this step for India's environmental and economic future.
Highlighting the recent reduction of subsidies midway through the FAME II scheme by the Ministry of Heavy Industries, Kaul underlined the growing relevance and urgency of the proposed road tax exemption policy for EVs.
Kaul elucidated that road tax and registration fees are not mere bureaucratic formalities; they wield significant influence over the acceptance or rejection of EVs in the market. He explained that these fees can either serve as incentives, encouraging consumers to opt for cleaner choices, or act as deterrents, pushing them back toward conventional gas-powered vehicles. Given that EVs often bear higher upfront costs due to their advanced battery systems, these additional expenses can be the deciding factor that dissuades potential buyers.
While some states, such as Uttar Pradesh and Punjab, have already waived road tax and registration fees for EVs, others have lagged behind in this regard, creating a fragmented landscape. Kaul expressed concern that this inconsistency not only perplexes consumers but actively discourages enthusiastic EV adopters, impeding the momentum of a market poised for rapid growth. Kaul also pointed out instances where states like Andhra Pradesh and Telangana initially offered tax incentives to buyers but later reversed their stance, imposing taxes, thereby further hindering the shift towards sustainable transportation.
Kaul stressed that inconsistent tax policies across states are not merely perplexing but are also obstructing the progress of the EV movement. He urged the need for a unified and favourable framework to accelerate India's transition to electric mobility, suggesting that a centralised advisory from the esteemed office of the Union Minister could cut through the confusion and set the stage for widespread adoption of this transformative technology.
By issuing a nationwide advisory in support of a uniform policy on road tax exemptions for EVs, the government has a unique opportunity to propel India toward a cleaner and more sustainable future, Kaul concluded. Notably, Kaul has been entrusted with the responsibility of assisting the EV sector in navigating the challenges it has faced since the previous year, with nearly all Original Equipment Manufacturers (OEMs) grappling with issues related to non-compliance with the FAME II scheme's policy details.
Source: Business Standard
Electric Vehicles
Road Tax Exemption
SMEV
EV adoption
Minister of Road Transport and Highways
Nitin Gadkari
Society of Manufacturers of Electric Vehicles
Sanjay Kaul
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