Electric passenger vehicles (EVs) will be subject to a five percent tax starting April 1, according to the 2026 Union Tax Law.

The law was enacted on March 15 and will take effect from April 1.

Under the law, battery electric passenger vehicles will be taxed at five percent. Vans, saloon/sedan cars and wagons with engine capacities between 1,501 cc and 2,000 cc will be taxed at 10 percent. Those with engine capacities from 2,001 cc to 4,000 cc will be taxed at 30 percent, while vehicles with engine capacities of 4,001 cc and above will be subject to a 50 percent tax.

The government had previously granted tax exemptions for EV vehicles for two consecutive years to encourage their wider use. Starting in 2026, however, a five percent tax on EVs has been introduced under the newly enacted Union Tax Law.