[Sensible_Speed]

Unfortunately, this doesn't translate to better facilities and infrastructure for the residents of the state. If you take the example of the city that is now called Bengaluru, certain patterns emerge. To remain politically correct (I see the irony too after my last sentence), I would like to leave the reasons for this mess to be interpreted by the readers of this forum. But objectively, the move to levy tax on expensive EVs has a certain sense of rationality. In the best case scenario, this can translate to better EV support infrastructure in the state. Also, considering those who can afford to pay 25 lakhs+ on an EV, I don't think they would mind shelling out the 10% extra. Tax on a new EV, net-net, is still lower than an equivalent combustion vehicle.

[Comrade]

Much better than Telangana. Atleast in KA, you can still buy all affordable EVs without the burden of life tax. So it’s still a kind of luxury tax. Our state has been charging 11-15% on all EVs including 6.99L Comet since Aug-2023. There is an additional 2% levy is this is your second car. Sigh!!!

[SR-71]

Originally Posted by Guna

There is also a proposal to charge 3% cess on all new vehicle registrations.
So, is it 13% you have to shell out if you buy a new EV?

https://www.moneycontrol.com/news/te...-12422341.html

The article clearly highlights the following

The cess collected on transport vehicles (yellow board commercial vehicles) will be used for the Karnataka Motor Transport and Other Allied Workers Social Security and Welfare Fund.

If your EV is private, then the cess should not kick in, if its an transport vehicle, it will kick in ir-respective of the vehicle being an EV or ICE.

[kamalgaur]

Originally Posted by Sensible_Speed

Also, considering those who can afford to pay 25 lakhs+ on an EV, I don't think they would mind shelling out the 10% extra.

Sorry, I definitely mind paying 10% extra just because of the stroke of a pen. I have waited for years for good VFM EVs, because Nexon and ZS aren't enough bang for the buck. Atto 3 is good but overpriced. At a time when prices of good EVs desperately need to drop to make them competitive, this 10% tax is a slap on the face of all enthusiastic EV buyers who are waiting for prices to converge to an optimal sweet spot.

[pgsagar]

Originally Posted by kamalgaur

Sorry, I definitely mind paying 10% extra just because of the stroke of a pen. I have waited for years for good VFM EVs, because Nexon and ZS aren't enough bang for the buck. Atto 3 is good but overpriced. At a time when prices of good EVs desperately need to drop to make them competitive, this 10% tax is a slap on the face of all enthusiastic EV buyers who are waiting for prices to converge to an optimal sweet spot.

That's why I have been saying, right time to buy EV is now. Those hoping to see cheaper EVs in future forget the fact that our revenue-hungry governments, both centre and states, leave no opportunity to levy taxes. If car gets cheaper but taxes move up, what's the point of waiting? Sure, one can argue, new tech will be available. Well, that will keep happening even after 50 years. One can keep waiting forever to catch up with latest tech. Development never stops.

[Hayek]

Originally Posted by pgsagar

That's why I have been saying, right time to buy EV is now. Those hoping to see cheaper EVs in future forget the fact that our revenue-hungry governments, both centre and states, leave no opportunity to levy taxes..

Agree fully. The entire idea of various subsidies on EVs is to facilitate a transition. GST @5%, registration of ₹5000 made my Ioniq 5 competitive with the alternatives like a Kodiaq. But as costs of batteries fall and EV prices become more competitive, the subsidies will be tapered away. We have seen that with the reduction of FAME for two wheelers. And a 10% tax is still half the registration that KA charges on ICE vehicles at a similar price unless I am mistaken.

Don’t worry, you will probably get there are material discounts on the Ioniq as we speak - which offset more than half the increased road tax. And you will probably get the facelift with a larger battery in a few months.

[Nomad]

One nation one tax is the only way to go. States will continue to loot its citizens for covering the burden of freebies. KA has been looking at every opportunity to draw more taxes, liquor, vehicles and now EVs and what not.

I am hoping the BH registration is made available to all across the country for all citizens. Then only this bias and looting will end.

[avira_tk]

No reason to offer any subsidies on EVs, if it's a awesome as the fan boys claim, then they should command a premium like the Hycross. The EVs use the same infra as everyone else, they should be taxes based on running also to recover the excise dues, Karnataka has made the right move here.

[BlackBagheera]

Does anyone know if this is effective already or going to be effective starting 1st April?

[Kishoreshack]

Originally Posted by speedmiester

In another stupid move, Karnataka Govt imposes lifetime tax of 10% on EVs costing above 25L.

Kindly refrain from using words like stupid
We have to understand the fact the same money can be used to make EV infrastructure

[speedmiester]

Originally Posted by Kishoreshack

Kindly refrain from using words like stupid
We have to understand the fact the same money can be used to make EV infrastructure

Knowing this govt, I am 1000% sure, it will never be used to improve EV infrastructure. I stand by my comment.

[SKC-auto]

Originally Posted by avira_tk

No reason to offer any subsidies on EVs, if it's a awesome as the fan boys claim, then they should command a premium like the Hycross. The EVs use the same infra as everyone else, they should be taxes based on running also to recover the excise dues, Karnataka has made the right move here.

No, it does not need the same infra, it does not need air with oxygen at one end and spew carbon dioxide and cancer causing NOx at the other end.

Anything except animals which take in air and pollute should be taxed heavily.

[DRIV3R]

Originally Posted by SKC-auto

Anything except animals which take in air and pollute should be taxed heavily.

So where does the electricity to charge these EVs come from? It's not even significantly from sustainable sources (solar/wind/hydro), leave alone 100%. Let's leave the pollution debate aside until then.

[SRTPorsche]

This is really sad news. I was finally taking the plunge into the EV ecosystem with BYD Seal.


With heavy taxation on income, imports and now this - its slowly making me more cynical towards the state and central govt. Even if they don't care about environment, reducing oil imports should be enough motivation for both the state and central govt's to encourage EV's in India.


Taxation on income, taxation on the import, taxation on the electricity to charge and if one wants to drive the car on a good road, please pay the toll as well.

[SKC-auto]

Originally Posted by DRIV3R

So where does the electricity to charge these EVs come from? It's not even significantly from sustainable sources (solar/wind/hydro), leave alone 100%. Let's leave the pollution debate aside until then.

Who is asking to not tax electricity generation from coal, gas?

How about also taxing oil extraction, oil spills, gas leaks from pipelines, refining oil, oil flares. Are the ICE fanboys who say ICE cars are cheap ready to pay 200₹/litre petrol, EV fanboys ready to pay 16₹/kwh or ready to setup solar generation at home.

When I ask the above question why the simple answer always be denial of climate change? If you have no solution follow what the solution is, simple.

Let's leave pollution debate, also leave subsidy debate.