Karnataka’s government has dealt a major blow to electric vehicle (EV) owners by axing tax exemptions and introducing lifetime charges. The move is expected to hit buyers hard, as it will make EVs more expensive than their petrol and diesel counterparts.
The state government argued that the tax breaks were not sustainable and were affecting revenue. EV owners, on the other hand, claim that the decision will discourage people from adopting eco-friendly vehicles.
Now, EV owners will have to pay a lifetime charge, which is a one-time fee that will be collected from buyers at the time of purchase. The amount of the charge has not been disclosed yet.
Consequences of the Decision
The introduction of lifetime charges is likely to make EVs less attractive to buyers, which could affect the state’s ambitious plans to increase the adoption of electric vehicles. The government had set a target of making 30% of new vehicle sales electric by 2030.
However, the opposition has welcomed the decision, saying that it will help the government to generate more revenue. They claim that the tax breaks were a luxury that the state could not afford.
EV owners, on the other hand, are worried about the impact of the decision on their wallets. They claim that the lifetime charge will make their vehicles more expensive than they initially thought.
What’s Next?
The government has said that it will finalize the amount of the lifetime charge soon. Once the amount is decided, EV buyers will have to pay it along with the purchase price of the vehicle.
The opposition has vowed to take up the issue in the state assembly and seek a rollback of the decision. EV owners, meanwhile, are preparing to lodge their protests and make their voices heard.