The Karnataka government has officially ended road tax exemptions for electric vehicles after notifying the Karnataka Motor Vehicles Taxation (Amendment) Act, 2026.
The law received the Governor's assent on April 9 and was notified on April 10, bringing a major policy shift for EV buyers in the state.
The amendment removes the earlier 100 percent road tax exemption for battery-operated vehicles.
This includes electric cars, jeeps, omni buses and private service vehicles running entirely on electricity.
The move means new electric vehicles purchased in Karnataka will now attract road tax, increasing on-road prices.
According to reports, the revised taxation model links road tax rates to the cost of the vehicle.
This means higher-priced electric vehicles are likely to face larger tax outgo, while lower-priced models may see a smaller impact.
The decision may affect purchasing sentiment in Bengaluru and other urban centres where EV adoption had been rising steadily.
Industry observers say Karnataka was among the states that strongly encouraged electric mobility through tax incentives, and the rollback could slow momentum.
Karnataka, especially Bengaluru, has emerged as a major market for electric cars, scooters and clean mobility startups.
With incentives now reduced, buyers may compare ownership costs more closely against petrol-hybrid alternatives.