Chennai: The Tamil Nadu government has extended the 100 per cent motor vehicle tax exemption for all categories of electric vehicles for another two years, covering the period from January 1, 2026, to December 31, 2027, reports DT Next.
The order was issued by Additional Chief Secretary Dheeraj Kumar and published in the Government Gazette on Monday. It said the tax relief will apply to both transport and non-transport battery-operated vehicles as defined under the Central Motor Vehicles Rules.
The state had earlier offered complete tax exemption for electric vehicles until December 31. Following requests from vehicle manufacturers and a recommendation from the Transport Commissioner, the government decided to extend the benefit to encourage the continued adoption of electric vehicles, in line with the Tamil Nadu Electric Vehicle Policy, 2023.
The government noted that electric vehicles now account for nearly 7.8 per cent of total vehicle usage in Tamil Nadu in 2025, showing steady growth in the sector. Manufacturers had urged the state to continue tax incentives to maintain this momentum.
The order also directed the Transport Commissioner to carry out a detailed study on the possible impact of levying taxes on electric vehicles in the future and to examine tax practices followed by other states. The decision was taken with the approval of the Finance Department.
