[speedmiester]

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

Karnataka Hikes Vehicle Registration Fees, Electric Cars Face Lifetime Tax

This will put a spanner in my plans of going in for the BYD Seal or Ioniq 5, I am not in favour of paying this govt anymore of my hard earned money.

I will hold on to my ZS EV for longer period now and maybe upgrade to upcoming Suzuki eVX if it comes under 25L ex-Showroom.

[SR-71]

People in Karnataka are already taxed the highest in the country when it comes to buying new vehicles, yet the government continuous to surprise us, with EVs taking the latest hit.

The taxation amendment also empowers the state government to impose a lifetime tax on electric vehicles (EVs). "Motor cars, jeeps, omnibuses, and private service vehicles running on electricity, with a vehicle cost exceeding Rs 25 lakh, will be subject to a lifetime tax of 10% of the vehicle's cost at the time of registration of a new vehicle," it states.

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

[Kevinrevvz]

They should maintain the GST and Road Tax benefits atleast till 2030 to foster proper EV adoption in India before rushing to collect more money! Hope other states such as TN don’t follow suit.

[vattyboy]

It is frustrating to see that despite the arrival of affordable electric vehicles, such as the BYD Seal, the government has started to impose excessive taxes and fees. This makes it seem like customers will never be able to purchase a car at a reasonable price. In the past, when car manufacturers sold their vehicles at higher prices, the government did not impose taxes. However, now that electric vehicle technology is becoming more affordable, the government seems to be playing a game of taxes and profiting from it.

[Hume]

Originally Posted by speedmiester

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

Karnataka Hikes Vehicle Registration Fees, Electric Cars Face Lifetime Tax

In all fairness, KA had been overall progressive in facilitating transition into the EV space. Even now, the 10% for above 25L EVs is better than what other states have done.

Most others that have given incentives have long rolled back. MH is the possibly the only one left but unfortunately it's only a matter of time due to increasing loss in revenues as adoption continues to grow.

[Love4Cars]

And it begins!
Other states will soon follow in their own ways and the tax-free (or limited tax) run for EV buyers will come to an end.
Having low-no RTO cost is one of the important point while buying an EV. Although, un-popular opinion but taxing only 25+L makes sense since they have spared a big chunk of mass EVs for now. Folks who are buying cars greater than 25-30L, do they really should be getting subsidy (based on their affordability)?
For once, govt is sparing the low and middle class!

[GTO]

10%? Wow, such a regressive move when the EV market is still fledgling. Good tech always starts at the top, then filters down to the segments below. And they are taxing the top.

Bangalore BHPians, unfortunately, you will now have to pay 5-lakhs extra for your BYD Seal or Ioniq 5. All your running cost savings vs petrol are gone right there (at least uptil 50,000 km).

On the other hand, KA just ensured that 26 - 28 lakh EVs will suddenly be priced at 24.99 lakhs now.

[Hume]

Originally Posted by GTO

10%? Wow, such a regressive move when the EV market is still fledgling. Good tech always starts at the top, then filters down to the segments below. And they are taxing the top.

Disagree with you a bit. Imagine flipping your argument and taxing the lower bracket and not taxing the higher - sounds absurd doesn't it? It's the govt's job to ensure the tax impact is felt appropriately. Case in point is the wealth tax and how it'll impact the quality of life of the super rich as opposed to the middle class.

But yes, if taxes COULD be avoided for everyone, it certainly would be ideal but again not sustainable over the long run. I'd say this is a lovely compromise!

[SR-71]

Originally Posted by GTO

Bangalore BHPians, unfortunately, you will now have to pay 5-lakhs extra...

You need only one of them to pave the way, the rest will follow suit soon . Its only time before the other governments sees EVs as the new cash cow, what better way mint money than to milk the average joe!

[kamalgaur]

What's the scene with buying EVs from Pondicherry now?

Even if one pays INR 1000 once in a while as a penalty to the traffic cop, saving INR 3-5 lakhs upfront for 7-8 years will be worth it, right?

[aim120]

First the astronomical hike in property tax this year in bangalore and now this, guess you reap what you sow.

I really hope BYD gets car in CKD form. May be the reason why MG reduced the price to 24.98 lakh for the top end MG ZS.

[pgsagar]

Originally Posted by Love4Cars

And it begins!
Other states will soon follow in their own ways and the tax-free (or limited tax) run for EV buyers will come to an end.

AP had imposed Lifetax on EVs last April but they waived off this year from 5th February or something like that.

[frewper]

After the current govt came into power, anything that can be considered a premium is taxed additionally.

They now have to recover the cost of the freebies that they have given out.

The central govt on one hand is trying to promote EVs, by reducing GST and giving an opportunity for automobile sector to florish and early adopters to take a risk with new tech.

These are promotors of the EV economy.

All the Karnataka Govt can see is an oppurtunity to charge a premium to these early adopters/hard working folks and use it to replenish funds, which they gave away for free.

[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

[DHARM]

Originally Posted by GTO

10%? Wow, such a regressive move when the EV market is still fledgling. Good tech always starts at the top, then filters down to the segments below. And they are taxing the top.

Bangalore BHPians, unfortunately, you will now have to pay 5-lakhs extra for your BYD Seal or Ioniq 5. All your running cost savings vs petrol are gone right there (at least uptil 50,000 km).

On the other hand, KA just ensured that 26 - 28 lakh EVs will suddenly be priced at 24.99 lakhs now.

This will also ensure, EV companies like Tesla, BYD rethink setting up shops in Karnataka as this is not a stable policy state to be present dont know what will hit them later. 35,000 crore worth of freebies forcing govt to impose such taxes