Gujarat Slashes EV Road Tax to 1% Until March 2026 to Boost Green Mobility

Substantial Savings for EV Buyers: The tax reduction translates to significant savings. For instance, purchasing an EV priced at ₹10 lakh previously incurred a road tax of ₹60,000. Under the new scheme, the tax is reduced to ₹10,000, resulting in a direct saving of ₹50,000.

Incentivizing Premium EV Purchases: Buyers of higher-priced EVs stand to benefit even more. For example, the road tax on a ₹30 lakh EV drops from ₹1.8 lakh to ₹30,000, offering a saving of ₹1.5 lakh. This move is expected to make premium electric vehicles more accessible to consumers.

Exclusion of Hybrid Vehicles: It’s important to note that this tax benefit applies exclusively to fully electric vehicles. Hybrid vehicles, including mild and strong hybrids, are not eligible for this exemption.

Simple Registration Process: To avail of the reduced tax rate, buyers must register their EVs through the Vahan 4.0 portal. This online system streamlines the registration process and ensures the tax benefit is applied efficiently.