Karnataka passes bill ending EV tax exemption pending governor's assent
Karnataka has passed a bill to end the 100% road tax exemption for electric vehicles, pending Governor's assent.
If the bill becomes law, you're buying an EV, expect to pay a lifetime tax: 5% if your ride costs up to ₹10 lakh, 8% for those between ₹10 and ₹25 lakh, and 10% if you're splurging above ₹25 lakh.
This is all part of the new Motor Vehicles Taxation (Amendment) Bill, 2026.
Karnataka EV makers and buyers worried
The move has some EV makers and future buyers worried it could slow down the shift to electric, though taxes on EVs are still lower than regular gasoline or diesel vehicles.
Karnataka's transport secretary NV Prasad says the bill is waiting on the governor's approval.
The change comes amid growing interest in electric mobility in Karnataka (India's fourth-biggest vehicle market).