Karnataka's electric car tax plan blow to middle class & green push: BJP

Bengaluru: The state govt's decision to impose a lifetime tax on electric cars has sparked political backlash, with the BJP alleging that the green mobility transition is being sacrificed for short-term revenue, while the middleclass aspiring to own affordable electric vehicles is being financially burdened.

State BJP president BY Vijayendra said Karnataka had built strong momentum in electric mobility through years of tax incentives, but the govt was now reversing course.

Highlighting current global tensions in West Asia, he added that the focus should be on making EVs more accessible, rather than taxing them.

In the recently held legislature session, the Karnataka Motor Vehicles Taxation (Amendment) Bill-2026, was passed. Electric cars priced up to Rs 10 lakh may attract a 5% tax, those in the Rs 10-25 lakh range 8%, while vehicles above Rs 25 lakh will continue to be taxed at 10%. The transport department is waiting for the governor's consent for the bill, after which a notification will be issued for collection of the tax.

The department expects to mobilise an additional Rs 259 crore by bringing electric cars under the tax net, while tax exemption for two-wheelers will continue.

Calling the move a result of financial mismanagement, Vijayendra alleged that the transport department was under pressure to raise revenues, sacrificing long-term green mobility goals for short-term gains. He said the decision would burden middle-class families and undermine efforts to cut emissions in Bengaluru.

"Middle-class families trying to shift to electric vehicles will now bear an additional burden as the government struggles to fund its promises. It is clear that the Congress has no growth plan, only a collection plan," he said.

Ironically, the BJP legislators had not raised their voice against the move when the bill was passed in the recent legislature session.