Gurugram: In a major push towards clean and sustainable transportation, the Haryana Cabinet approved a 100 per cent exemption in Motor Vehicle Tax on the registration of new electric vehicles (EVs) with an ex-showroom price of up to Rs 30 lakh. The decision is expected to make electric mobility more affordable and accelerate the adoption of eco-friendly vehicles across the state.
The decision was taken during a Cabinet meeting chaired by Chief Minister Nayab Singh Saini and fulfils a key announcement made in the Haryana Budget 2026-27, presented earlier this year.
Under the new policy, buyers of pure electric or battery-operated two-wheelers, three-wheelers (including autos and e-rickshaws) and four-wheelers priced up to Rs 30 lakh will receive a complete exemption from Motor Vehicle Tax at the time of registration in Haryana.
For electric vehicles with an ex-showroom price above Rs 30 lakh, the government has approved a 50 per cent exemption in Motor Vehicle Tax.
At present, Haryana offers a 20 per cent rebate in one-time Motor Vehicle Tax on the registration of electric and CNG vehicles. With the latest Cabinet approval, the concession for eligible electric vehicles has been significantly enhanced from a rebate to a full tax exemption, while the existing 20 per cent rebate for CNG vehicles will continue unchanged.
Officials said the move has been taken under the provisions of the Haryana Motor Vehicles Taxation Act, 2016, which empowers the state government to prescribe tax rates for different categories of vehicles registered and operated in Haryana.
The state government believes that reducing the upfront cost of electric vehicles will encourage more consumers to switch from conventional fuel-powered vehicles to cleaner alternatives. The initiative is also expected to contribute to lower vehicular emissions, improved air quality and reduced pollution levels in cities and towns across Haryana.