There is good news for people planning to buy electric vehicles (EVs). The Tamil Nadu government has announced major relief for EV buyers by offering tax benefits. This benefit applies to both transport and non-transport electric vehicles.
The state government has issued an official notification stating that buyers of electric vehicles will be exempt from paying tax. This decision will benefit EV buyers across the state and is expected to increase the adoption of electric vehicles.
100% Tax Exemption for Two Years
Under the new announcement, no tax will be charged on the purchase of electric vehicles. This exemption applies only to battery-operated vehicles.
The tax relief will be available for a period of two years, starting from January 1, 2026, to December 31, 2027.
Key points of the exemption:
100% tax exemption announced
Applicable to battery-operated EVs
Valid for both transport and non-transport vehicles
Effective from January 1, 2026, to December 31, 2027
Long-Standing Demand of EV Manufacturers Fulfilled
Electric vehicle manufacturers had been demanding this tax relief for a long time. After detailed discussions
and review, the Tamil Nadu government has accepted the demand and announced a complete tax exemption on battery-operated vehicles.
Manufacturers believe this step will help boost EV sales and support the growing EV ecosystem in the state.
EV Adoption Rising in Tamil Nadu
According to the Government Order (GO), several automobile companies have informed the state government that electric vehicle adoption in Tamil Nadu is increasing rapidly.
The share of EVs in the state is expected to reach around 7.8% by 2025, which is a significant improvement.
Due to this growth, companies requested the government to continue road tax exemptions for all types of electric vehicles.
Transport Commissioner to Study EV Tax Impact
The government order also mentions that the Transport Commissioner has been assigned the task of studying the impact of taxing electric vehicles.
The commissioner will prepare a detailed report and submit it to the government, keeping in mind the EV policies followed by other states in India.
