No Road Tax for Electric Vehicles in Delhi

The tax exemption is in line with Delhi Government’s new EV policy to enhance the adoption of EVs


The Delhi Government has exempted road tax on all battery electric vehicles (EVs).

The transport department issued a notification saying that the Delhi government has exempted the tax on all battery electric vehicles with immediate effect in the region under the Delhi Motor Vehicle Taxation Act, 1962.

“Delhi government has exempted road tax on battery-operated vehicles. With the right incentives and supporting infrastructure, we are determined to ensure Delhi leads the country in rapid transition to electric vehicles,” said Kailash Gahlot,  Transport Minister of Delhi, in his tweet.

In August 2020, the government introduced the new Delhi Electric Vehicle Policy, 2020, intending to enhance the adoption of EVs in the national capital region. The new policy proposed tax waivers, charging and swapping infrastructure establishment, battery cycling ecosystem, and creating a non-lapsable State EV Fund. The government also offered financial incentives for EV buyers in the region.  Under the policy, e-rickshaws, electric two-wheelers, and goods carriers will receive incentives of ₹30,000 (~$408.09). Simultaneously, purchasers of electric cars will receive intensive ranging from ₹10,000 (~$ 136.03) to ₹150,000 ($ 2040.47).  It also planned to boost the adoption of battery electric vehicles, so they contribute to 25% of all new vehicle registrations by 2024.

Last month, the government announced that it would introduce a subsidiary plan for purchasers of EVs. The government plans to pay the subsidies within two days to eligible EV purchasers through a software developed by the ICICI Bank.  The EV vendors have to register with the Delhi Government’s Transport Department to process these subsidies. The vendors will add details about buyers on the software on the sale of EVs. The government will credit the incentives in EV buyers’ bank account following the motor licensing officers’ authentication.

Last year, Delhi cut down the tariffs for EV charging for electric vehicles. Residential charging stations will now have to pay ₹4.5 (~$ 0.065)/kWh instead of ₹5.5 ($0.07)/kWh since these are low tension electric supply. Public charging stations are high tension (HT) points and will now attract a tariff of ₹4 (~$ 0.057)/ kVAh instead of ₹5 (~$ 0.07)/kVAh.


Read Mercom’s latest report on the EV segment’s performance during the pandemic.

Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.

More articles from Harsh Shukla.