State finance minister Kanubhai Desai announced a rebate of 5% in vehicle tax for all fully battery-operated vehicles. Experts believe that the announcement will make EVs significantly cheaper for people.

"A people-oriented and environment-friendly decision was taken to give a rebate of up to 5% on motor vehicle tax on fully battery-operated electric vehicles, which are presently taxed up to 6% lump sum motor vehicle tax, so that the resultant effective tax rate is 1%," the finance minister said.

Pranav Shah, chairman of the Federation of Automobile Dealers' Association (Gujarat), said, "The motor vehicle tax applies to the price of a vehicle, excluding GST. With the 5% rebate, electric two-wheelers will become cheaper by around Rs 3,000 to Rs 4,000, and four-wheelers will be cheaper by around Rs 50,000. This will increase the demand for battery-operated vehicles."