Bengaluru, 2 April

The BJP has slammed the State government’s move to end tax exemption given to electronic four-wheelers like cars and omnibuses, saying the move will make electric vehicles costlier. Notably, electric two-wheelers will continue to be exempted from tax.

“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,” State BJP President BY Vijayendra wrote on X.

But now, “a middle-class family trying to move to an electric vehicle will now be forced to pay a heavy additional burden because this government can no longer fund its political promises,” he said.

Under the revised structure proposed in the Karnataka Motor Vehicles Taxation (Amendment) Bill, 2026, which was passed by the State legislature, 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.

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.

Vijayendra noted that this was coming at a time of global instability and fuel price shocks. Any responsible government would make EVs more affordable, he said, but the “Siddaramaiah-led Congress government has chosen to tax this very alternative”.

“It is very clear that Congress has no growth plan, only a collection plan,” he added.

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.”