Governments around the globe are taking severe initiatives to promote and develop EVs for the protection and conservation of the environment and to establish effective EV production lines in their respective countries. Authorities are coming up with various tax exemptions on EVs to promote the sale of EVs and are also imposing taxes on internal combustion engine cars to discourage the purchase of fossil fuel cars.
Moving forward in this direction, the government of Odisha has now introduced a congestion tax on fossil fuel-driven commercial vehicles. The government is also looking to impose a pollution cess and additional road tax in order to discourage potential buyers from purchasing a fossil-fuel model. Under the Odisha electric vehicle policy in 2021, the government has been offering subsidies and incentives to promote EVs in the state.
A senior transport department official told the media, "We will soon prepare a detailed proposal on the exact quantum and structure of the congestion fee and send it to the government for approval."
The official added that the money collected from the proposed tax would be allocated towards the EV funds to promote the sale of EVs in the state. At first, commercial cabs and fossil fuel auto-rickshaws would be placed under the congestion tax. Subsequently, the new EV policy would bring other categories of ICE transport vehicles.
Under the new EV policy, the state government is going to provide an incentive of 15% on the purchase of different categories of EVs. On purchasing an electric two-wheeler, the government would provide incentives up to Rs. 5,000, up to Rs. 12,000 on the purchase of any three--wheeler and up to Rs. 1,00,000 on the purchase of any four-wheeler EV. The government is also looking to provide interest-free loans to all of its employees for the purchase of EVs. The government is also looking to prioritize EVs for official government use.