Centre considers sharp import tax cuts on EV
The government is considering slashing import duties on electric cars to as low as 40%, two senior government officials told Reuters, days after Tesla Inc’s appeals for a cut polarised the country’s auto industry.
For imported electric vehicles (EVS) with a value of less than $40,000—including the car’s cost, insurance and freight—the government is discussing slashing the tax rate to 40% from 60% presently, the there are discussions that are ongoing,” one of the officials and luxury EV sales are negligible, according to industry estishifts gered a rare public debate among automakers over whether such a move would contradict India’s push to increase domestic manufacturing.
Even so, the government is in favour of a cut if it can see companies such as Tesla providing some benefit to the domestic economy - manufacture locally, for example, or give a firm timeline on when it would be able to, one of the officials said.
“Reducing import duties is not a problem as not many EVS are imported in the country. But we need some economic gain cessful with vehicle imports taxes on them are high.
The second official said since the duty cut is being sidered only for EVS and other categories of impo cars, it should not be a con for domestic automakers mainly manufacture afford gasoline-powered cars.
India’s finance and c merce ministries, as well a federal think tank Niti Aa chaired by Prime Minister endra Modi, are discussing proposal and all stakehol will be consulted, the per added.