Tamil Nadu Extends 100% EV Tax Waiver Until 2027 To Accelerate Adoption

Chennai: Tamil Nadu Industries Minister TRB Rajaa has said that the motor vehicle tax exemption for battery-operated vehicles in the state is to continue until December 2027, under the Tamil Nadu Motor Vehicles Taxation Act, 1974.

Sharing the government notification in this regard, Rajaa said the decision taken by the Chief Minister M K Stalin reinforces the commitment to support EV adoption, affordability and manufacturing at scale. "This shows how pro-industry our government is," he said. "Tamil Nadu has extended 100 per cent motor vehicle tax exemption for all electric vehicles till December 31, 2027, aligning with our deep-rooted sustainability focus," he said in a social media post late on Tuesday.

Observing that the adoption of battery-operated vehicles in Tamil Nadu touched 7.8 per cent in 2025, he said there is still a long way to go, especially in expanding charging infrastructure and making the entire supply greener. "This policy reduces cost for consumers while giving manufacturers long-term certainty. Even as global markets face volatility and pressure on clean mobility investments, Tamil Nadu keeps its signal clear and stable," he noted.

"In exercise of the powers conferred by sub-clause (b) of clause (1) of section 20 of the Tamil Nadu Motor Vehicles Taxation Act,1974 (Tamil Nadu Act 13 of 1974), the Governor of Tamil Nadu hereby exempts all battery operated vehicles both transport and non-transport from payment of motor vehicle tax under that Act for a further period commencing on and from the January 1, 2026 and ending with the December 31, 2027." the notification shared by Rajaa, said.

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