BJP slams Karnataka Cong govt's move to end tax exemption given to EV four-wheelers

Bengaluru, Apr 2 (PTI) Karnataka BJP has slammed the state government's move to end tax exemption given to battery-operated four-wheelers like cars and omni buses and claimed the move will make electric vehicles costlier.

State BJP President B Y Vijayendra accused the Congress government of taxing Karnataka's future to pay for its "failures".

Karnataka government plans to introduce a lifetime tax for electric vehicles, including motor cars, jeeps, omni buses and private service vehicles. However, electric two-wheelers will continue to be exempted from tax.

Under the revised structure proposed in the Karnataka Motor Vehicles Taxation (Amendment) Bill, 2026, which has been passed by the state legislature, the tax will range from 5 per cent to 8 per cent based on the vehicle cost.

Until now, Karnataka has been levying a 10 per cent lifetime tax only on EVs priced above Rs 25 lakh since 2024, and has exempted others aimed at promoting cleaner mobility.

"Karnataka had built real momentum in electric mobility. Years of tax support helped position the state as a serious player in India's EV ecosystem, encouraged investment, and made consumers more confident about shifting away from fuel dependence," Vijayendra posted on 'X'.

He said, at a time when global instability threatens fresh fuel price shocks, any responsible government would make EVs more affordable and more accessible. "Instead, the Siddaramaiah-led Congress government has chosen to tax this very alternative." As per the Bill, EVs priced up to Rs 10 lakh will attract a 5 per cent tax, those between Rs 10 lakh and Rs 25 lakh will be taxed at 8 per cent, and vehicles above Rs 25 lakh will attract 10 per cent tax.

Stating that the decision is a direct result of a government that has pushed the state's finances into distress and is now hunting for revenue wherever it can find it, the state BJP chief said, "With departments under pressure to meet inflated collection targets, Karnataka's green mobility transition is being sacrificed for short-term cash." "A middle-class family trying to move to an electric vehicle will now be forced to pay a heavy additional burden simply because this government can no longer fund its political promises without punishing progress. It is very clear that Congress has no growth plan, only a collection plan." The damage goes beyond cost, Vijayendra said, adding that "Bengaluru already ranks among the top 3 cities in the country for road traffic emissions, and yet Congress has chosen to make cleaner mobility harder, not easier. First, they mortgaged the future through reckless debt. Now they are taxing the very solutions that could protect the next generation." PTI