After tax sops on hybrid cars, UP government extends EV subsidy scheme till 2027

4 months ago | 51 Views

Days after waiving off registration tax on hybrid cars in the state, the Uttar Pradesh government has announced that its EV subsidy scheme has also been extended by another three years. According to report by CNBC TV, the state government has extended its electric cars and two-wheelers purchased till 2027. The state had launched the Electric Vehicle Manufacturing and Mobility Policy to be offered on electric cars and two-wheelers purchased till 2027. The state had launched its EV policy in 2022 to promote usage of electric vehicles.

The extended EV policy in Uttar Pradesh will offer a subsidy of up to ₹1 lakh for electric cars and ₹5,000 for two-wheelers. The EV subsidy scheme in UP also offers benefits for commercial vehicles with ₹12,000 earmarked for electric three-wheelers, while another ₹20 lakh for private electric buses. The total outlay for EV subsidy in UP is around ₹350 crore with ₹100 crore reserved for electric two-wheelers and ₹250 crore for electric cars.

Tax sop on hybrid cars in UP

The decision to extend the EV subsidy scheme comes days after the UP government announced tax sops on hybrid vehicles in the state. In efforts to promote eco-friendly vehicles, the state government has fully waived off the registration fee for strong hybrid and plug-in hybrid cars. The decision came amid ongoing debate about reducing GST on hybrid cars across the country. However, the Centre has not taken any decision on this yet. Currently, electric vehicles (EVs) in India are taxed at only 5 per cent, whereas hybrid vehicles attract tax as high as 43 per cent.

The tax sop on hybrid cars in UP will help buyers enjoy significant price cuts on several models, including Toyota Urban Cruiser HyRyder, Innova Hycross, Maruti Suzuki Grand Vitara and Invicto besides the Honda City hybrid sedan. However, according to CNBC-TV18, the state government has not yet issued a clarification on the price range of hybrid cars that will be eligible for this scheme.