Telangana eliminates road tax on EVs through 2026 in major green push

The Telangana government has launched a sweeping initiative to accelerate electric vehicle (EV) adoption by announcing a complete exemption from road tax and registration fees for all EVs purchased and registered within the state through December 31, 2026. This significant policy shift, effective immediately, removes the previous 5,000-vehicle cap on tax benefits, marking a major step toward sustainable transportation in the region.

The announcement came during a Sunday press conference at the Secretariat, where Transport Minister Ponnam Prabhakar, accompanied by Special Chief Secretary (Transport) Vikas Raj and Transport Commissioner Surendra Mohan, revealed that the government order had been issued the previous day. The policy expansion builds upon the state's growing success in EV adoption, with current registrations reaching 1.70 lakh vehicles, representing 5% of all vehicles registered in Telangana.

"This is a crucial step toward our vision of a cleaner, more sustainable Telangana," said Minister Prabhakar, highlighting the policy's role in complementing the existing Telangana Electric Vehicle and Energy Storage Policy 2020-2030. The comprehensive initiative includes various incentives, from tax exemptions to retro-fitment benefits, designed to make EV ownership more attractive to residents.

The government's environmental strategy extends beyond private vehicle ownership. Prabhakar announced plans to replace 3,000 RTC buses with electric alternatives within the Greater Hyderabad Municipal Corporation (GHMC) limits, demonstrating a commitment to greening public transportation infrastructure.

Environmental monitoring data supports the timing of this initiative, with Hyderabad currently maintaining a moderate Air Quality Index (AQI) of 83, while nearby Patancheru and Sangareddy record levels of 82 and 79 respectively. These relatively favorable conditions present an opportunity to prevent the development of severe air quality issues similar to those experienced in cities like New Delhi.

Chief Minister A Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka have endorsed the initiative as part of their broader vision for urban environmental improvement. The administration is also developing complementary policies, including:
- A new framework for scrapping vehicles older than 15 years
- Implementation of automatic vehicle testing centers
- Enhanced road safety measures

The policy announcement comes amid concerning traffic safety statistics, with approximately 1.50 lakh annual road accident fatalities nationwide and 20 daily casualties in Telangana alone. In response, the government has partnered with an NGO to implement pre-license awareness programs, integrating road safety education into the broader transportation policy framework.

Minister Prabhakar emphasized the generational impact of the initiative, urging citizens to consider EVs not just for immediate financial benefits but as an investment in environmental preservation for future generations. "The choices we make today in transportation will shape the air our children breathe tomorrow," he stated.

The removal of the registration cap signifies the government's confidence in the state's ability to support widespread EV adoption. Previous limitations had restricted tax benefits to 5,000 vehicles, but the new policy acknowledges the growing demand for electric vehicles and the state's commitment to supporting this transition without limitations.