Delhi Govt Raises Electric Car Registration Fee From 0% To 10% | V3Cars

04 October 2024
By Mahesh Yadav
0

The Delhi government have recently started applying a registration tax of up to 10% on electric cars in the state. Since September 2024, electric cars in Delhi incur an extra 8-10% registration fee. For electric cars costing less than Rs. 10.0 lakh (ex-showroom), the registration cost is 8%. For other electric cars with ex-showroom price of Rs. 10.0 lakh or more, the registration is at a flat rate of 10%. No further tiers in registration of electric cars in Delhi.

To cut down on pollution in the capital region, several years ago, Delhi government had decided to waive registration fee on electric vehicles. This sudden move, which comes just ahead of the winter season is against their messaging, which favoured cleaner transport to contain the smogging during the cold wave.

This decision affects all potential EV buyers who were earlier interested in buying an EV and taking on the range anxiety in exchange for lower running and purchasing costs. Meanwhile, the central government are maintaining their stance of levying only 5% GST on electric vehicles while petrol/diesel/CNG cars include a tax (GST+cess) of up to 50%. Thus, such a tax structure allows EVs to penetrate the market while the government bears some of that burden by helping them maintain some price competitiveness with petrol/diesel cars.

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Going forward, we may see revisions in the taxation of EVs in the next few years at the state as well as central government levels. Earlier, even at lower tax rates, the EVs continued to carry a huge price premium over comparable petrol/diesel/CNG cars. However, in recent times, such as with a car like Windsor or Curvv EV, we are starting to see the prices of electric cars catch up to petrol/diesel cars.

At Rs. 13.50 lakh (ex-sh), the MG Windsor, for example, costs about the same as a typical petrol SUV of similar size with comparable set of features. Thus, the cost benefit starts before you even bring the car home as you were paying no registration tax on the electric car in states like Delhi. However, this new revision to their policy makes it difficult to start saving on fuel costs, which the buyers deserve for being early adopters of the new and potentially risky technology. They also have to carry the burden of range anxiety, which is not even a thought for people driving cars with other fuel types.

Let us know your thoughts in this area. Do you think we may see taxes go up on electric vehicles and EV charging or will we continue to see cheap electricity at public and personal charging locations for the foreseeable future?

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