Uttarakhand Cabinet Approves Tax Relief on Hybrid Vehicles to Promote Green Transportation

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The Uttarakhand Cabinet, led by Chief Minister Pushkar Singh Dhami, has approved key decisions to promote green transportation and reduce vehicular pollution across the state. One of the most significant steps includes offering a one-time tax exemption on the registration of hybrid vehicles, which run on both petrol and battery power.

The Cabinet also approved amendments to the state’s Swachhata Parivartan Gatisheelata (Clean Mobility) Policy. As per the revised policy, individuals who scrap their old vehicles and purchase new electric, CNG, or BS-VI-compliant vehicles will now receive the subsidy amount directly into their bank accounts.

Currently, Uttarakhand has around 750 registered hybrid vehicles. However, their sales have remained relatively low, primarily due to the high registration cost — a one-time tax that amounts to nearly 10% of the vehicle’s total price. In contrast, neighbouring states like Uttar Pradesh offer significant tax exemptions on such eco-friendly vehicles, prompting potential buyers to purchase vehicles outside Uttarakhand.

To address this disparity and encourage local adoption of cleaner vehicles, the state’s transport department proposed the waiver of the one-time registration tax on hybrid vehicles. The Cabinet has now given a green signal to this proposal.

Officials believe the move will not only encourage the use of low-emission vehicles but also boost local registrations and support the state’s broader environmental goals. The initiative reflects Uttarakhand’s continued focus on pollution control, sustainable development, and clean energy transitions.

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