Haryana Approves 100% Motor Vehicle Tax Exemption on EVs Up to ₹30 Lakh

Buying an electric vehicle in Haryana could soon become significantly cheaper.

The Haryana Cabinet on Tuesday approved a 100% exemption from motor vehicle tax on electric two-wheelers, three-wheelers and four-wheelers priced up to ₹30 lakh, replacing the state's earlier 20% tax exemption for EVs. The decision is expected to lower the upfront cost of buying an electric vehicle and brings Haryana's tax policy broadly in line with neighbouring Delhi, which recently introduced a similar benefit for eligible EVs.

The exemption will come into effect after the Haryana Government issues the official notification detailing the implementation date and eligibility conditions.

The decision marks the culmination of a proposal first announced in May, when Haryana Transport Minister Anil Vij said the government was considering a full tax exemption for electric vehicles on the lines of Delhi and Chandigarh. Tuesday's Cabinet approval formally clears that proposal.

What Changes for Buyers?

Until now, buyers of electric vehicles in Haryana received only a 20% exemption on motor vehicle tax when registering an EV. Under the new decision, eligible vehicles priced up to ₹30 lakh will receive a complete exemption, while the existing benefit for CNG vehicles remains unchanged.

The exemption covers electric two-wheelers, three-wheelers and four-wheelers, meaning most mass-market electric vehicles sold in India are expected to qualify. Luxury EVs priced above ₹30 lakh may fall outside the scheme, depending on the eligibility criteria specified in the final notification.

Motor vehicle tax forms part of a vehicle's on-road price and is paid during registration. Removing this tax reduces the amount buyers have to pay upfront, making EV ownership more affordable. While the exact savings will depend on the vehicle's price and applicable tax slab, the biggest gains will naturally be for higher-priced vehicles within the ₹30 lakh limit.

The Cabinet also approved another measure aimed at individual buyers. Women registering a non-transport vehicle priced up to ₹20 lakh will receive an additional 1% rebate on the ex-showroom price. This is a separate scheme and applies irrespective of the vehicle's fuel type. Buyers of eligible electric vehicles registered in a woman's name may be able to avail both benefits, subject to the final notification.

Part of Haryana's Larger EV Push

Tuesday's decision builds on work that has been underway for several months. In May, Transport Minister Anil Vij had announced that the government was preparing a proposal to offer a full tax exemption for electric vehicles to encourage faster adoption across the state. The Cabinet's approval now turns that proposal into government policy, although implementation will begin only after the notification is issued.

It is also separate from the Cabinet decision taken in June, which focused on promoting cleaner commercial transport in the National Capital Region through incentives for replacing older commercial vehicles with cleaner alternatives. While that decision targeted commercial fleets, the latest announcement is aimed directly at reducing the ownership cost of private electric vehicles.

The move also strengthens Haryana's position alongside neighbouring states that are encouraging electric mobility through tax benefits. Delhi already offers major tax exemptions under its EV Policy 2.0 alongside purchase incentives and investments in charging infrastructure. Haryana's latest announcement, however, is limited to motor vehicle tax and does not include any new purchase subsidy or charging infrastructure package.

Why It Matters

The upfront purchase price continues to be one of the biggest reasons many buyers hesitate before switching to an electric vehicle. By removing motor vehicle tax, Haryana reduces one of the largest one-time costs associated with buying an EV without introducing a direct purchase subsidy.

The decision is particularly significant because Haryana shares a large commuter base with Delhi and forms an important part of the National Capital Region's automobile market. Similar tax policies across neighbouring states help reduce differences in ownership costs and make electric vehicles a more attractive option for buyers across the region.

While the Cabinet has approved the exemption, buyers will have to wait for the official notification before the benefit becomes available. The notification is expected to clarify the effective date, whether the ₹30 lakh limit refers to the ex-showroom price, and any other eligibility conditions.

For now, the Cabinet's approval represents Haryana's strongest tax measure yet for private electric vehicle buyers and another step towards making EV ownership more affordable in one of India's largest automotive markets.