Real Story Behind UP’s Road Tax Waiver On Hybrid Cars: Has Nothing To Do With Nitin Gadkari
Just a while ago, it was announced that all strong hybrid cars in Uttar Pradesh will have their road taxes waived. Many people attributed this to the influence of Union Minister Nitin Gadkari. However, in reality, it has nothing to do with Gadkari. Instead, it traces back to the continuous efforts of a determined car enthusiast from Prayagraj. This particular man’s legal battle has led to a landmark change in the state’s approach to hybrid vehicles.
The Man Who Got the Hybrid Road Tax Waived
As mentioned above, the reason the road tax on strong hybrids has been waived in Uttar Pradesh is due to Piyush Bhutani. The 58-year-old businessman and automobile enthusiast from Prayagraj, Uttar Pradesh, has a passion for cars and has purchased over 100 vehicles throughout his life.
What happened was that back in 2023, Bhutani bought two hybrid vehicles. He purchased a Toyota Innova Hycross and a Maruti Suzuki Grand Vitara. Given his understanding of the UP government’s 2022 Electric Vehicle (EV) policy, which offered a 100% road tax waiver for EVs registered in the state, Bhutani naturally expected the same benefit for his hybrids.
However, to his surprise, the dealers were unable to apply for the waiver. They stated that outdated systems at the Regional Transport Office (RTO) had caused this issue. Rather than accepting this as a bureaucratic oversight, Bhutani decided to take action. Following this, he reached out to various government departments.
As per the reports, Bhutani had conversations with departments including the transport commissioner and the RTO in Prayagraj to address the issue. When his efforts were met with silence, Bhutani, along with another concerned customer, Abhishek Maheshwari, took the matter to court.
Legal Proceedings
Following this, the duo approached a lawyer who filed a writ petition in the Allahabad High Court. Bhutani’s case was simple yet profound. He argued that the state’s EV policy, which explicitly mentioned a road tax waiver for vehicles driven by electric motors—including hybrids—should apply to his purchases.
He highlighted that the policy defined EVs broadly, encompassing not just battery-powered vehicles but also plug-in hybrids and fuel cell vehicles. The High Court ruled in Bhutani’s favor in its very first hearing. It then directed the UP government to refund the road tax he had paid.
After this, the ruling had a ripple effect. On July 5, 2023, just two days after the court’s decision, the state government issued a directive to all RTOs in UP, enforcing the road tax waiver for hybrid vehicles.
At the time when the road taxes on strong hybrids were waived off. Many believed that this was done by UP Chief Minister Yogi Adityanath and Union Minister of Road Transport and Highways Nitin Gadkari. However, it has now been made clear that they had nothing to do with this initiative.
Impact of This Order
This particular case managed to have a huge impact. Due to this ruling, the financial relief received by strong hybrid car owners was substantial. Road tax in UP is typically 8% for vehicles priced above Rs 10 lakh and 9% for those above Rs 20 lakh.
For hybrid car owners, the waiver translated into significant savings. This now makes these vehicles even more attractive in a market increasingly focused on sustainable mobility.
Good News for Hybrid Vehicles in UP
The UP government didn’t stop at just waiving the road tax. In addition to the tax waiver, the state extended a cash incentive of up to Rs 1 lakh for EVs. This now includes hybrids and fuel cell vehicles, for another year. This incentive will be available until the government meets its target of incentivizing 25,000 cars or until the allocated budget is exhausted.
Good and Bad for Carmakers
The road tax waiver and extended incentives are set to benefit market leaders like Maruti Suzuki and Toyota Kirloskar Motor. However, this move has also raised concerns among manufacturers like Tata Motors and Mahindra & Mahindra. Both of these carmakers have invested heavily in battery EV technology.
Hence, the concessions for hybrids could potentially undermine their market share. This is particularly more prominent in a state as large as Uttar Pradesh. Looking ahead, there are discussions about imposing price caps on vehicles eligible for these incentives.
This move could exclude certain high-end models from the benefits. After which, it could lead to further complications, as the state government will need to justify why these caps were not implemented earlier when EV incentives were first introduced.