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The Karnataka government has withdrawn the lifetime road tax exemption for electric vehicles (EVs) and introduced a new taxation structure. However, electric two-wheelers will continue to remain exempt from the levy.
Under the revised policy, electric cars, jeeps, buses, and other private EVs will now attract lifetime road tax. Earlier, the tax was applicable only to EVs priced above ₹25 lakh, but the new rules bring all battery-operated vehicles under its ambit.
The tax will be levied based on the vehicle’s cost. EVs priced up to ₹10 lakh will attract a 5% tax, those between ₹10 lakh and ₹25 lakh will be taxed at 8%, and vehicles priced above ₹25 lakh will face a 10% tax.
Existing EV owners will also be required to pay the tax, with rates ranging from 93% to 25% depending on the age of the vehicle. The move has been implemented through the Karnataka Motor Vehicles Taxation (Amendment) Bill, 2026, passed in March 2026.
According to government officials, the decision is aimed at boosting state revenue, with an estimated additional collection of around ₹250 crore. Regional Transport Offices (RTOs) are expected to begin collecting the tax once notified.
The move has drawn criticism from experts and opposition leaders, who argue that imposing taxes on EVs could slow down their adoption at a time when policies should encourage a transition to cleaner mobility. The government, however, maintains that the step is necessary given the state’s financial constraints.
