UP To Extend EV Registration And Road Tax Exemption Until 2027; Incentives For Two, Four-Wheelers Continue

The Uttar Pradesh government is preparing to extend the 100 per cent exemption on EV registration and road tax for another two years. The Industrial Development Department has drafted a proposal recommending the extension, which will now allow EV owners to enjoy full exemptions until 2027. The current policy was set to expire on October 13.

The government implemented the EV policy on October 14, 2022, to reduce vehicular pollution and promote the manufacturing of EVs in the state. Under this policy, a 100 per cent exemption on registration and road tax was being provided to encourage the purchase of EVs. 

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To date, approximately 2,00,000 two-wheeler and 25,000 four-wheeler owners have benefited from the exemption on registration and road tax. The EV policy also included a provision for subsidies of Rs 5,000 on the purchase of two-wheelers, Rs 12,000 on three-wheelers, Rs 1,00,000 on four-wheelers, and a maximum of Rs 2,000,000 on the purchase of an e-bus. 

According to sources, the proposal sent to the administration recommends offering additional benefits, based on a study of the EV policies of Telangana, Maharashtra, and other states. In Maharashtra, EV owners are also given exemptions from toll tax on several routes. 

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Industrial Development Minister Nand Gopal Gupta Nandi stated that the state is actively promoting investment in the EV sector. The Ashok Leyland EV manufacturing unit in Lucknow is near completion, with production of EV buses expected to start within one to two months, paving the way for further investments in the sector.

The proposal to extend the exemption on registration and road tax for the next two years under the EV policy is ready and will be implemented after receiving approval from the Cabinet.