A delegation of Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) on Wednesday (August 23) submitted a memorandum to Chief Secretary K.S. Jawahar Reddy, seeking life tax exemption for Electric Vehicles (EVs).
The APCCIF stated that the imposition of 12 life tax on EVs (both passenger and two-wheelers) has significantly slowed down registrations.
It said though the upfront cost of EVs remained high, primarily due to the battery prices, a decrease was anticipated as more domestic companies were foraying into EV manufacturing and sales.
Offering exemptions from registration fees, road tax, and other levies would substantially reduce the initial cost of EVs and encourage potential buyers to make the transition.
Therefore, an extended waiver of the road tax would not only encourage a quicker adoption of EVs but also bolster the State’s transition to sustainable transportation.
The APCCIF pointed out that many States recognised the importance of EVs and were providing subsidies until 2027 to promote them.
Andhra Pradesh, which has tremendous potential to lead the shift towards electric mobility, should cut down on various taxes so that the growing customer preference to greener mobility takes tangible shape on a large scale.
Imposition of road tax on EVs would inevitably escalate the ownership costs and hamper sales and, in turn, affect the viability of dealerships.
This could lead to job losses and encourage prospective customers to purchase EVs from neighbouring States, the APCCIF noted.
