Tejasvi Surya seeks rollback of lifetime tax on e-cars

Bangalore South MP L S Tejasvi Surya has written to Chief Minister Siddaramaiah seeking the withdrawal of lifetime tax on electric cars.

The state legislature recently passed the Karnataka Motor Vehicles Taxation (Amendment) Bill, 2026, to levy lifetime tax on e-cars priced up to Rs 25 lakh. Cars priced up to Rs 10 lakh pay 5%, while those costing between Rs 10 lakh and Rs 25 lakh fork out 8%. E-cars priced above Rs 25 lakh already carry a 10% road tax. Two-wheelers will remain exempt. 

The state aims to earn around Rs 250 crore from the taxation in 2026–27. It levies a 13-18% lifetime tax on conventional cars based on their floor area and cost. 

In his April 13 letter, Surya called the decision ‘regressive’, noting that it runs counter to the broader national objective of accelerating electric mobility. 

“Rather than incentivising adoption, it risks discouraging consumers and slowing the growth of the electric vehicle ecosystem in the state,” he stated. 

According to Surya, the tax ‘contradicts’ national priorities, especially as India aims for net-zero emissions through sustainable and renewable approaches and must urgently reduce its dependence on fossil fuels in the current global scenario.

Citing Delhi’s example, which offers 100% road tax waivers for e-cars under Rs 30 lakh, he urged the chief minister to reconsider the policy. 

Transport Minister Ramalinga Reddy has defended the policy, pointing out that e-car tax rates in Karnataka are lower compared to other states. He also believes that the taxation will not deter EV buyers, given the strong vehicle demand in Bengaluru. However, he clarified that the tax will not be levied on existing vehicles. 

The tax rates will come into effect after the bill is notified in the gazette, Reddy told DH last week.