Haryana Slashes EV Tax for Most New Electric Cars

Haryana's Cabinet has approved substantial revisions to the state's electric vehicle (EV) incentive framework, aligning with budget announcements for 2026-27. New battery electric vehicles (BEVs) with an ex-showroom price up to ₹30 lakh will now receive a complete exemption from motor vehicle tax. This policy significantly enhances previous incentives, which offered only a 20% one-time exemption.

For buyers of premium EVs exceeding ₹30 lakh, a 50% motor vehicle tax exemption will be provided. This revised structure is designed to make a wide range of EVs more accessible and competitive within India's automotive market. The existing 20% tax exemption for CNG vehicles remains unchanged.

Further promoting vehicle ownership, a 1% rebate on motor vehicle tax has been introduced for new non-transport vehicles costing up to ₹20 lakh when registered in a woman's name. This aims to encourage greater vehicle acquisition by women.

These updated policies are expected to accelerate EV adoption in Haryana, potentially making the state's incentives among the most attractive nationally. They may also help retain vehicle registration revenue within Haryana by countering the practice of registering vehicles in neighboring states with lower tax rates.