Surat: The South Gujarat Chamber of Commerce and Industry (SGCCI) has appealed to the Gujarat government to implement the RTO tax cut for electric vehicles (EVs) announced in the state budget for 2025-26.

This request follows the Maharashtra government’s move to provide road tax relief for EVs, which has led to a rise in sales. In contrast, EV purchases in Gujarat have slowed, according to industry sources.

Gujarat Finance Minister Kanubhai Desai had announced a reduction in RTO tax for battery-powered vehicles from 6% to 1% in the 2025-26 budget. On Monday, the SGCCI submitted a proposal to the government, urging immediate implementation.

SGCCI President Vijay Mewawala stated that EV sales in Gujarat have declined compared to previous years. However, if the tax cut is implemented soon, it could revive demand. The reduction from 6% to 1% would offer significant savings to buyers and boost the adoption of electric vehicles in the state.

He further noted that although the scheme was scheduled to take effect from April 1, 2025, the government resolution (GR) for its execution has not yet been issued. Mewawala urged the state government to release the GR at the earliest to ensure timely implementation. DeshGujarat