SGCCI Urges Gujarat Government to Implement EV Tax Cut Announced in Budget 2025-26
Surat: The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has appealed to the Gujarat government to immediately implement the reduction in RTO tax on battery-operated vehicles from 6% to 1%, as announced in the 2025-26 state budget. On Monday, April 14, 2025, the Chamber formally submitted a proposal to State Finance Minister Kanubhai Desai, emphasizing the urgency of the matter.
SGCCI President Vijay Mewawala stated that while the government had announced the tax reduction with effect from April 1, 2025, no government resolution (GR) has yet been issued to bring the policy into effect. He warned that any further delay in implementing the scheme could lead to a continued decline in the sale of electric vehicles (EVs) across the state.
Mewawala noted a significant drop in EV purchases this year compared to previous years. He emphasized that if the promised tax cut is promptly enforced, it would substantially lower the cost for buyers and reinvigorate demand for electric vehicles in the market.
The Chamber urged the state government to expedite the release of the GR, stressing that timely action would support the adoption of environmentally friendly vehicles in Gujarat and contribute to sustainable development goals.