PNS | VIJAYAWADA
The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has sought the AP government for an extension of life tax exemption on electric vehicles and wrote to Chief Secretary Dr KS Jawahar Reddy.
AP Chambers general secretary B Rajasekhar said that according to G.O. MS. No. 70, from June 7, 2023, a life tax of 12 per cent on electric vehicles (EVs), both passenger and two-wheelers, has been instituted in Andhra Pradesh. He said that this has had an unintended impact of significantly slowing down the registration of electric vehicles in the State.
Rajasekhar said that the imposition of road tax on EVs would inevitably escalate the ownership costs, which may hamper sales and, in turn, affect the viability of dealerships. He feared that this could lead to job losses and possibly encourage prospective customers to purchase EVs from neighbouring States offering exemptions or subsidies. AP Chambers opined that offering exemptions from registration fees, road tax and other levies can significantly reduce the initial cost of EVs and encourage potential buyers to make the transition. He added that extended waiver of the road tax would not only encourage a quicker adoption of EVs, but would also bolster the State’s transition to sustainable transportation.
