The Karnataka government is taking significant steps to boost the adoption of electric vehicles (EVs) in the state.
A new proposal aims to reduce road tax and registration fees on hybrid cars to encourage more people to buy environmentally friendly vehicles.
In addition, the government plans to offer incentives to companies manufacturing electric vehicles to further advance clean mobility in the state.
Reduction in Taxes for Hybrid and Electric Vehicles
According to the new policy, the road tax on strong hybrid cars priced below Rs 25 lakh will be reduced from 18% to 13%.
However, this benefit will apply only to strong hybrid cars and not to mild hybrids.
This policy is similar to one introduced by the Uttar Pradesh government earlier, which also aimed to promote hybrid car sales by offering tax exemptions.
Incentives for Electric Vehicle Manufacturers
The proposal includes benefits for companies that manufacture electric vehicles.
Companies setting up new factories or expanding existing ones in Karnataka will receive a boost of 15% to 25% on land and machinery costs.
These benefits will extend to companies producing battery components and EV charging infrastructure.
Additionally, EV manufacturers will receive up to 25% in benefits based on the level of their investment and the number of jobs they create.
Promoting Clean Mobility in Karnataka
This move by the Karnataka government is a crucial step toward promoting clean mobility, aiming to reduce pollution and encourage the use of vehicles powered by clean fuels.
Besides electric vehicles, the proposal also covers hybrid and hydrogen-powered vehicles.
While no specific timeline has been set for finalizing the policy, the government is actively working on implementing it soon.
