The Haryana Cabinet on Tuesday approved a full exemption from motor vehicle tax for new electric vehicles priced up to Rs 30 lakh, stepping up incentives to accelerate EV adoption in the state. The Cabinet also announced a 1 per cent motor vehicle tax rebate on non-transport vehicles registered in the names of women.

The decisions were announced after a Cabinet meeting chaired by Chief Minister Nayab Singh Saini.

What the new EV policy covers

Under the revised policy, battery-operated two-wheelers, three-wheelers and four-wheelers priced up to Rs 30 lakh (ex-showroom) will attract no motor vehicle tax at registration.

EVs priced above Rs 30 lakh will get a 50 per cent tax exemption.

The existing 20 per cent rebate on CNG vehicles remains unchanged.

Move aimed at stemming outflow of registrations

The EV exemption brings Haryana on a par with Delhi and Chandigarh, which already offer zero registration charges on eligible electric vehicles.

According to a Times of India report, dealers in the state had long complained that customers were buying vehicles from Haryana showrooms but registering them in Delhi or Chandigarh to avoid registration tax, costing the state revenue and hurting local sales.

The proposal, pushed by Transport Minister Anil Vij, had been pending for some time before Tuesday’s approval.

1% rebate for vehicles bought in women’s names

The Cabinet also cleared a 1 per cent motor vehicle tax rebate on non-transport vehicles costing up to Rs 20 lakh when purchased and registered in a woman’s name.

The move fulfils a commitment made in the state’s 2026–27 Budget and is aimed at encouraging women’s financial independence and participation in economic activity.