Delhi Government Announces Full Tax Exemption on Electric Vehicle Purchases

June 17, New Delhi – The capital city of India, Delhi, has unveiled a new electric vehicle (EV) policy aimed at controlling air pollution. In response to the serious air quality challenges, the Delhi government has introduced attractive tax exemptions and regulations to encourage the use of electric vehicles. Under the new policy, buyers of electric cars priced up to ₹30 lakh will be exempt from road tax and registration fees. The government has decided to provide a 100% exemption on these charges. Approved by the cabinet, this policy will take effect starting July 1.

The Delhi government has set an ambitious target to make the capital completely pollution-free by March 2030. To achieve this goal, it has committed to investing ₹15,000 crore over the next four years. The policy also proposes the phased phase-out of petrol and compressed natural gas (CNG) powered two-wheelers. From April 2028, the sale and registration of non-electric two-wheelers will be completely banned in Delhi. The government expects this move to significantly reduce the increasing vehicle congestion and associated pollution within the city. It further believes this step will bolster the electric transport ecosystem and ensure cleaner air for Delhi’s residents.