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Bhubaneswar : Just like Maharastra and U.P. ,the state government is planning to waive all kinds of transport-related fees and road tax on the purchase of electric vehicles.

The proposed initiative is aimed at encouraging the use of electric vehicles to address the problems of air pollution and rising fuel prices.

“I have sent the proposal to the transport department for approval. Our purpose is to popularise the use of the electric vehicle, which is considered to be a green transport system. We have planned a host of incentives, including 100 per cent exemption of all kinds of fees and taxes on private and commercial electric vehicles. Once the government approves, a gazette notification will be issued,” state transport commissioner Sanjeeb Panda said.

According to Panda’s letter to the transport department on January 15, a proposal has been readied to provide the exemption on fee for registration, assignment of new registration mark, endorsing hire purchase/lease/hypothecation agreement, conducting test for renewal of fitness certificate, grant of permit and fee for renewal and surcharge of permit.

Sources said since the prices of electric vehicles range between Rs 5 lakh and Rs 8 lakh, users could save a lot of money under the proposed road tax exemption scheme. At present, road tax on electric vehicles stands at three per cent in the state. Road tax is levied at six per cent on petrol/diesel-ignited vehicles costing up to Rs 6 lakh.Regional transport offices (RTOs) charge 10 per cent road tax on vehicles costing above Rs 10 lakh. The state government is also planning to provide special incentives to those who wish to replace their old diesel or petrol vehicles with electric ones. There are also plans to provide subsidy to those opting for electric vehicles as these are more expensive than diesel or petrol ones.