The Karnataka Transport Department has decided to go ahead with its plan to levy lifetime road tax on all categories of electric vehicles, despite strong objections from the opposition. The rollout is expected within the next 15 days, with technical changes currently being made to the VAHAN portal to enable collection at the time of vehicle registration.
The move follows the passage of the Karnataka Motor Vehicles Taxation (Amendment) Act, 2026, which expands the scope of taxation to cover all electric vehicles. Under the revised structure, buyers will be required to pay a one-time lifetime road tax based on the cost of the vehicle. Electric vehicles priced up to Rs 10 lakh will attract a 5 percent tax, those in the Rs 10 lakh to Rs 25 lakh range will be taxed at 8 percent, and vehicles costing above Rs 25 lakh will be levied a 10 percent tax.
However, the tax exemption still applies to electric two-wheelers.
Until now, the state had largely exempted electric vehicles from such taxes to promote the adoption of cleaner mobility. Since 2016, Karnataka has offered lifetime tax exemptions as part of its push towards electric mobility, though in recent years a 10 percent tax had been imposed on electric cars priced above Rs 25 lakh. The new amendment significantly widens the tax net to include all price segments.
The decision has drawn criticism from the Bharatiya Janata Party (BJP), which has termed the move regressive and counterproductive to the growth of the electric vehicle sector. Bengaluru South MP Tejasvi Surya has written to Chief Minister Siddaramaiah opposing the policy, arguing that it runs contrary to broader national efforts to accelerate electric mobility.
In his letter, Tejasvi warned that the imposition of taxes across all segments could deter potential buyers and slow down adoption at a time when the EV ecosystem is still developing. He said the move could affect overall sales and undermine investor confidence in the sector.
The MP also pointed to Union government initiatives such as FAME India and PM E-Drive, which are aimed at incentivising electric vehicle adoption through subsidies and policy support. He argued that Karnataka’s decision risks diluting the impact of these programmes by increasing the upfront cost burden on consumers.
This article was written by a student intern working with TNM.