Uttar Pradesh Extends 100% Road Tax Exemption for Electric Vehicles

The Government of Uttar Pradesh, through Notification No. 22/2025/1271/XXX-4-2025-8 (19)/2018 T.C., issued on November 5, 2025, announced a 100 percent exemption in road tax for eligible electric vehicles (EVs) registered within the state. This notification came into effect upon its issuance from Lucknow and was promulgated for the implementation of the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022, as amended in 2025. The decision followed a notification from the Industrial Development Department dated October 17, 2025, and minutes from a High Level Empowered Electric Vehicle Committee (HLEEVVC) meeting held on October 10, 2025. The measure aims to provide benefit and facilitation through exemption in road tax and registration fees for electric vehicles, aligning with the Standard Operating Procedure (SOP) issued by the Transport Department on March 18, 2023. This new notification supersedes several earlier notifications issued on March 2, 2023, including those under Sections 4(2), 4(2-A), 6(1), and 4(1-A) of the Uttar Pradesh Motor Vehicles Taxation Act, 1997, and partially amends a notification from April 21, 2025, issued under Section 4(1) of the same Act. The exemption applies to electric vehicles purchased and registered in Uttar Pradesh, with specific timelines for eligibility.

The legislative intent behind this notification is to bolster the adoption and manufacturing of electric vehicles within Uttar Pradesh, thereby promoting sustainable mobility and reducing the carbon footprint. The earlier legal position provided for certain exemptions, but this notification clarifies and extends the period of 100 percent road tax exemption. The policy rationale addresses the need to incentivize consumers and manufacturers, overcoming initial cost barriers associated with electric vehicles. The legislation provided: “...it is hereby specified that 100 exemption in road tax will be admissible to eligible electric vehicles from the tax applicable on different categories of vehicles...” This provision is central to the policy's objective of making EVs more accessible. The exemption is applicable to EVs purchased and registered in the state within two distinct periods: first, from October 14, 2022, to October 13, 2025, covering the initial three years from the policy's notification date; and second, from October 14, 2025, to October 13, 2027, encompassing the fourth and fifth years of the policy's effective period. For the purpose of this exemption, "electric vehicles" are explicitly defined as "pure electric vehicles (Pure EVs)," ensuring clarity on eligible vehicle types. This move is expected to stimulate the EV market and support the state's broader environmental and industrial development goals.

Keywords: Uttar Pradesh, Electric Vehicles, Road Tax Exemption, EV Policy, Mobility, Notification, Transport Department, Industrial Development

Geo Tags: India, Uttar Pradesh District: Not Applicable