Gandhinagar: The Gujarat government today announced the implementation of the rebate that was accrued on motor vehicle tax for electric vehicles. As announced in the state budget, a 5% rebate on motor vehicle tax for fully battery-operated electric vehicles has been introduced. Earlier, the tax rate was 6% lump sum motor vehicle tax, but now, with the rebate, the effective tax rate is 1%.

The decision was confirmed by the Minister of State for Transport, Harsh Sanghavi, in a tweet that said, “The Gujarat Government is accelerating the adoption of electric vehicles by offering a massive 5% tax rebate—bringing down the tax on EVs to just 1%! This green initiative is valid till 2026 and is now live on the VAHAN 4.0 portal. It’s the perfect time to switch to clean energy and contribute to a sustainable Gujarat.”

Big Discount for E-Car Buyers in Gujarat – Drive Green, Save Big!

Revving Up a Greener Future!
Under the visionary leadership of @Bhupendrapbjp, the Gujarat Government is accelerating the adoption of electric vehicles by offering a massive 5% tax rebate—bringing down the tax on…

— Harsh Sanghavi (@sanghaviharsh) April 18, 2025

Earlier this week, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) urged Gujarat finance minister Kanu Desai to expedite the implementation of the proposed reduction in RTO tax on battery-operated vehicles from 6% to 1%. SGCCI said the delay is impacting EV sales, as many buyers are postponing purchases in anticipation of the tax cut. DeshGujarat