Assam Cuts Electric Vehicle Tax By 2 Percent

Highlights :

  • Assam Budget stated, the “Apun Bahan scheme launched, provides male employees a 2% interest subsidy for diesel/petrol vehicles and a 3% subsidy for electric vehicles.
Assam Cuts Electric Vehicle Tax By 2 Percent EV Tire-Wear Emissions 1,850 Times More Than Particulate Emissions By Petrol, Diesel Cars, Says Study

Assam Government introduced 2% reduction in Motor Vehicle Tax and exemptions on registration fees for new electric vehicles in its recently released budget document for the 2024-25 session.

State Government reviewed their commitment in last year’s budget, “The Apun Bahan scheme has been launched, providing male employees a 2% interest subsidy for diesel/petrol vehicles and a 3% subsidy for electric vehicles. The transport department collection has seen an uptick from Rs.1022 crore in FY 2021-22 to Rs 1361 crore in FY 2022-23 and Rs 1374 crore till 31st January FY 2023-24.” 

The document elaborated on some of their key initiatives stating, “Under the Vehicle Scrappage Policy, 3,000 vehicles were dismantled scientifically. We have introduced 100 CNG buses, and 200 electric buses in Guwahati city under Assam Transport Corporation (ASTC). In FY 24-25, we plan to introduce another 100 EVs in the Guwahati metropolitan so that public transportation in the city is made 100% green and fossil-fuel free.”

They compared, “In the last financial year, the transport department showcased their achievements by consistently contributing substantial revenue – over Rs. 1300 crore. The initiation of cashless transactions and the launch of 50 contactless services significantly saved man-days and contributed to an estimated economic saving of Rs. 400 crores.”

They also said, “The new vehicle scrappage policy, green tax, fitness fine reduction, motor vehicle tax settlement and incentives for electric vehicles demonstrated a commitment to environmental goals and ensure that only fit vehicles ply on roads the Directorate of Inland Water Transport, with 98 lakh annual passengers and initiatives like the riverine-based Religious Circuit aims to upgrade infrastructure, increase vessels and foster river tourism through the Assam Inland Water Corporation Limited.”

It also mentioned, “The department aims for sustainable transport, infrastructure upgrades, and the continued implementation of innovative solutions. allocate an amount of Rs. 623.05 crore to this department. Some ongoing memoranda of Understanding (MoUs) have been signed to bolster renewable energy initiatives. The MoUs were signed between Assam Power Generation Corporation Limited and Oil India Limited for Rs. 4091 crore for green power generation projects, including a 25 MW solar project at Namrup.

Collaborated with Neyvelli Lignite Corporation India Limited and Satluj Jal Vidyut Nigam for state-based renewable energy projects. The government of India has approved to setup of 1000 MW Solar Power Plants Further, the works of Lower Kopili Hydro Electric Project with a capacity of 120 MW will be completed by the end of this year.

For rooftop, they have stated, “All new buildings (private and public) to be constructed in the State shall mandatorily install. roof-top solar facility. Our Government shall come up with a new legislation to this effect during the current year.”

The document stated, “The Assam Power Generation Corporation Limited (APGCL) has collaborated with OIL to establish 620 MW of Renewable energy projects in Assam. The inaugural project, Namrup Solar, with a capacity of 25 MW, is to be completed within the F.Y 2024-25, with an allocation of Rs. 49.00 crore. The Karbi Langpi Middle-II Hydro Power Project in the West Karbi Anglong district has been approved by the Hon’ble Cabinet of Assam in October 2023 for Rs. 417.32 crore.”
APDCL also remains steadfast in developing 2000 MW renewable energy projects,1000 MW Solar Power Plants under Mukhya Mantri Sauro Shakti Prokolpo and 320 MW Solar Power Projects under Build Own Operate mode in Assam.

Commercial Tax:

The document shared details of the tax collected, it mentioned, “There is mop up of Rs.19,715 crore in FY 2022-23 under Finance (Taxation) Department, exceeding the previous year’s receipt by 21%. Assam is among the top few states in the country with the highest growth in GST collection. GST and non-GST collection till 31st January 2024 is Rs.18,474 crore against Rs.16,240 crore collection for the corresponding period during the financial year 2022-23, registering a growth of 14%. Next year, we will strive for a growth of 16%.”

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