Telangana Government Announces Full Tax Exemption to Boost Electric Vehicle Adoption

The Telangana government has announced a 100 per cent exemption from road tax and registration fees on purchasing electric vehicles (EVs), aiming to encourage adoption and reduce pollution. The exemptions apply to a wide range of EVs, including two-wheelers, four-wheelers, commercial passenger vehicles (such as taxis), three-seater autorickshaws, electric light goods carriers (including three-wheeled goods carriers), tractors, and buses.

Additionally, the Telangana State Road Transport Corporation (TSRTC) buses and those owned by private industries for exclusive employee transportation (non-commercial use) will enjoy lifetime exemptions. This initiative will be valid for two years, up to December 31, 2026, regardless of the number of EVs registered within this period.

Minister for Transport and BC Welfare Ponnam Prabhakar, alongside Special Chief Secretary (Transport) Vikas Raj, announced the decision on Sunday, emphasising its role in lowering pollution and ensuring Hyderabad remains sustainable. Highlighting the urgency of the initiative, Mr Prabhakar said the policy aims to prevent Hyderabad from facing pollution challenges similar to those of New Delhi.

The state had introduced an EV policy for 2020-2030 under the previous government, but implementation was inconsistent. The new policy is positioned as a more actionable framework tailored to Telangana's needs.

Acknowledging the need for robust infrastructure, the government has called on EV manufacturers to establish charging stations, minimising inconvenience for EV users. Within 10 days, a meeting involving relevant departments such as Transport, Home, and Hyderabad Metropolitan Development Authority (HMDA) will ensure seamless coordination for effective policy implementation.

As of now, 1.7 lakh EVs have been registered in Telangana, constituting 5 per cent of the state's total vehicles. The new policy aims to accelerate these numbers by incentivising adoption through financial benefits and public awareness campaigns.