Karnataka ends electric vehicle tax exemptions under new 2026 amendment. The state government has formally brought EVs like cars, jeeps, and buses under a lifetime road tax structure, ending a decade-long exemption introduced in 2016. Two-wheelers remain exempt. Tax rates are tiered by vehicle cost: 5% for vehicles under 10 lakh rupees, 8% for 10-25 lakh range, and 10% for vehicles exceeding 25 lakh rupees. The move is expected to generate approximately 250 crore rupees in additional revenue for the state. Pre-registered vehicles face graduated tax demands ranging from 93% to 25% of total lifetime tax based on age. Multiple EV manufacturers had petitioned the chief minister opposing the change, citing concerns that additional taxation would make electric vehicles more expensive than traditional internal combustion engine vehicles during a critical adoption phase.
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