Delhi Proposes Road Tax Waiver for EVs Under Rs 30 Lakh Until 2030

The Delhi government has introduced a draft for the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2024. It aims to accelerate the city's transition to electric mobility. The proposal is a full waiver of road tax for EVs priced below Rs 30 lakh, effective until March 31, 2030. This strategic move is designed to make green transport more accessible to the middle-class segment and commercial operators. Reinforcing the plan will help the capital's commitment to reduce vehicular emissions.

Proposed Incentives and Regulatory Framework

The draft policy outlines a structured approach to incentivising EV adoption while regulating the growing aggregator sector. By setting a price ceiling of Rs 30 lakh for the tax waiver, the government specifically targets the mass-market segment. This ensures that the benefit reaches a broader demographic rather than luxury car buyers.

Key provisions of the draft proposal include:

• Tax Exemptions: Total waiver of road tax for all electric two-wheelers, three-wheelers, and four-wheelers costing up to Rs 30 lakh (ex-showroom).
• Timeline: The tax benefits are proposed to remain in effect for a six-year period, providing long-term policy certainty for buyers and manufacturers.
• Aggregator Mandates: Digital platforms and delivery services will be required to transition their fleets to electric in a phased manner.
• Registration Charges: Along with road tax, the proposal considers the continuation of waived registration fees to further lower the initial acquisition cost of EVs.
• Sustainability Targets: The policy aligns with Delhi’s broader EV Policy 2.0. It seeks to ensure that 25% of all new vehicle registrations are electric by the end of the decade.

The proposal marks a shift from direct subsidies to long-term tax breaks. It aims to build a green ecosystem without draining the state budget. By targeting cars under Rs 30 lakh, the city tackles the high entry cost for most buyers. This move could become a model for other Indian cities fighting pollution.

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