India, Feb. 21 -- In a major relief for electric vehicle (EV) buyers in the state, Gujarat finance Minister Kanubhai Desai has proposed offering a rebate of 5% on motor vehicle tax on "fully-battery" operated EVs.

He made the announcement during his Budget speech yesterday (February 20). With this, the motor vehicle tax on EVs in the state will now effectively be charged at 1% from 6% earlier.

"To realise the idea of 'Green Growth' envisaged by the Hon'ble Prime Minister for fostering and conservation of the environment, a people oriented and environment friendly decision has been taken to give rebate of up to 5% on motor vehicle tax on fully battery operated electric vehicles which are presently taxed up to 6% lumpsum motor vehicle tax...