AP Chambers appeals to CS to withdraw life tax on EVs

Vijayawada: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has said that it would like to draw the attention of the Chief Secretary to the GO, which imposes life tax of 12 per cent on Electric Vehicles (EVs), both passenger and two-wheelers. This has had an unintended impact of significantly slowing down the registration of electric vehicles in the State.

AP Chambers general secretary B Rajasekhar in a statement here on Wednesday said that across the nation, many states, recognising that the EV sector harbours immense growth potential, are extending subsidies until 2027 to promote EVs in their states.

He recalled that in 2019, Andhra Pradesh took a laudable step by being the first State to introduce an EV policy. Offering exemptions from registration fees, road tax, and other levies can significantly reduce the initial cost of EVs and encourage potential buyers. Therefore, an extended waiver of the road tax will not only encourage a quicker adoption of EVs but will also bolster the State’s transition to sustainable transportation.

Imposing road tax on EVs will inevitably escalate the ownership costs, which may hamper sales and, in turn, affect the viability of dealerships. This could lead to job losses and possibly encourage prospective customers to purchase EVs from neighbouring states offering exemptions or subsidies, the general secretary pointed out.

In light of these potential consequences, AP Chambers urged the Chief Secretary to consider extending the exemption of road tax for EVs for 18 months more. This extension will undoubtedly foster the growth of the EV market in Andhra Pradesh and will align with the State’s vision of a greener and sustainable future.