SMC Gives ₹30.73 Crore Tax Relief to 19,190 Electric Vehicles in One Year Under E-Vehicle Policy

Surat Municipal Corporation gave ₹30.73 crore in vehicle tax relief to 19,190 electric vehicles under its Green E-Vehicle Policy between June 2024 and June 2025.

Four-Wheelers Account for 87% of Tax Relief

• 3,824 electric four-wheelers received tax relief of ₹26.75 crore.
• Four-wheelers made up 19.9% of all e-vehicles receiving the benefit.
• They accounted for nearly 87% of the total tax relief given by the municipality.
• The average tax relief per electric four-wheeler was around ₹69,973.
• Despite being far fewer in number than two-wheelers, four-wheelers accounted for the largest share of revenue forgone.

Two-Wheelers Form 79% of Beneficiary Vehicles

• The number of e-two-wheelers receiving relief was almost four times that of e-four-wheelers.

• 15,092 electric two-wheelers received tax relief of ₹3.71 crore.

• Two-wheelers accounted for 78.6% of all e-vehicles receiving the benefit.

• Their share of the total tax relief was only 12.1%.

• The average tax relief per electric two-wheeler was around ₹2,460.

Three-Wheelers and Other Vehicles

The data also includes 165 electric three-wheelers, which received tax relief of ₹16.20 lakhs.

Another 109 electric vehicles from other categories received relief of ₹10.71 lakhs. Together, these 274 vehicles accounted for ₹26.92 lakhs in tax relief.

Growing E-Vehicle Adoption, Revenue Impact

At the same time, the 100% exemption has resulted in the Surat Municipal Corporation foregoing ₹30.73 crore in potential vehicle tax revenue. The scale of the impact varies significantly by vehicle type, with electric four-wheelers accounting for the overwhelming share of the revenue forgone.