{"id":1299787,"date":"2025-09-04T12:14:06","date_gmt":"2025-09-04T06:44:06","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1299787"},"modified":"2025-09-04T12:14:41","modified_gmt":"2025-09-04T06:44:41","slug":"import-duty-on-luxury-electric-vehicles-can-be-increased-to-28","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/","title":{"rendered":"Import Duty On Luxury Electric Vehicles Can Be Increased To 28%"},"content":{"rendered":"\n

An Indian tax panel has proposed sharp increases in consumer levies on luxury electric vehicles (EVs) priced above $46,000, a move that could hit brands like Tesla, Mercedes-Benz, BMW, and BYD.<\/p>\n\n\n\n

\"Import<\/figure>\n\n\n\n

Prime Minister Narendra Modi is pushing tax reforms that encourage Indians to buy domestic goods, even as U.S.\u2013India ties strain over tariffs.<\/p>\n\n\n\n

India Proposes Sharp Tax Hikes on Luxury EVs<\/strong><\/p>\n\n\n\n

The government has suggested large GST cuts on items like shampoos and electronics to make them cheaper.<\/p>\n\n\n\n

While the panel supported sweeping GST cuts, it also urged raising EV taxes.<\/p>\n\n\n\n

It recommended lifting GST on EVs priced between \u20b92 million and \u20b94 million ($23,000\u2013$46,000) from 5% to 18%.<\/a><\/p>\n\n\n\n

For EVs above $46,000, it proposed a 28% rate, arguing such cars serve the \u201cupper segment\u201d and are mostly imports.<\/p>\n\n\n\n

Since Modi\u2019s government plans to scrap the 28% slab, the GST Council may either move these EVs to 18% or to a new 40% luxury bracket, a government source said.<\/p>\n\n\n\n

The GST Council, led by the finance minister and state representatives, meets on September 3\u20134 to review the proposals.<\/p>\n\n\n\n

After the news, the Nifty Auto index dropped up to 0.5%, with Mahindra and Mahindra down nearly 3% and Tata Motors 1.2%.<\/p>\n\n\n\n

EVs account for only 5% of car sales between April and July but grew 93% year-on-year to 15,500 units.<\/p>\n\n\n\n

The panel noted: \u201cThe uptake of electric vehicles is increasing\u2026 it is also important to signal that higher-priced EVs can be taxed at higher rates.\u201d<\/p>\n\n\n\n

Domestic EV makers like Mahindra and Tata may be affected, though few of their models cross \u20b92 million.<\/p>\n\n\n\n

Foreign Automakers To Feel The Brunt<\/strong><\/p>\n\n\n\n

Foreign automakers will feel the brunt, as Tesla\u2019s new Model Y starts at $65,000, and Mercedes-Benz, BMW, and BYD also sell high-end EVs in India.<\/p>\n\n\n\n

Carmakers have urged the government to retain the 5% GST to protect India\u2019s EV adoption goals.<\/p>\n\n\n\n

Tata Motors said it is \u201cimperative\u201d to maintain the rate, warning hikes will slow \u201cthe transition to clean mobility.\u201d<\/p>\n\n\n\n

BMW India said a tax increase \u201ccan derail the vision of high electric adoption and local production.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

An Indian tax panel has proposed sharp increases in consumer levies on luxury electric vehicles (EVs) priced above $46,000, a move that could hit brands like Tesla, Mercedes-Benz, BMW, and BYD. Prime Minister Narendra Modi is pushing tax reforms that encourage Indians to buy domestic goods, even as U.S.\u2013India ties strain over tariffs. India Proposes […]<\/p>\n","protected":false},"author":25,"featured_media":1299797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[124],"tags":[289,8624],"class_list":["post-1299787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automobile","tag-import-duty","tag-luxury-electric-cars"],"acf":[],"yoast_head":"\nImport Duty On Luxury Electric Vehicles Can Be Increased To 28% - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Import Duty On Luxury Electric Vehicles Can Be Increased To 28% - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"An Indian tax panel has proposed sharp increases in consumer levies on luxury electric vehicles (EVs) priced above $46,000, a move that could hit brands like Tesla, Mercedes-Benz, BMW, and BYD. Prime Minister Narendra Modi is pushing tax reforms that encourage Indians to buy domestic goods, even as U.S.\u2013India ties strain over tariffs. India Proposes […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-04T06:44:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-04T06:44:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Radhika Kajarekar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Radhika Kajarekar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/\",\"url\":\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/\",\"name\":\"Import Duty On Luxury Electric Vehicles Can Be Increased To 28% - Trak.in - Indian Business of Tech, Mobile & Startups\",\"isPartOf\":{\"@id\":\"https:\/\/trak.in\/stories\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg\",\"datePublished\":\"2025-09-04T06:44:06+00:00\",\"dateModified\":\"2025-09-04T06:44:41+00:00\",\"author\":{\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/3d6ff61ba47715670139663cc4767b1c\"},\"breadcrumb\":{\"@id\":\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#primaryimage\",\"url\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg\",\"contentUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/trak.in\/stories\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Import Duty On Luxury Electric Vehicles Can Be Increased To 28%\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/trak.in\/stories\/#website\",\"url\":\"https:\/\/trak.in\/stories\/\",\"name\":\"Trak.in - Indian Business of Tech, Mobile & Startups\",\"description\":\"Trak.in is a popular Indian Business, Technology, Mobile & Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups & Social Media Space\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/trak.in\/stories\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/3d6ff61ba47715670139663cc4767b1c\",\"name\":\"Radhika Kajarekar\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f1db673eec2bc1089f0cb5aabbc342d28aa6e57f0b0ade5099ce322f0a984358?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f1db673eec2bc1089f0cb5aabbc342d28aa6e57f0b0ade5099ce322f0a984358?s=96&d=mm&r=g\",\"caption\":\"Radhika Kajarekar\"},\"url\":\"https:\/\/trak.in\/stories\/author\/radhika-kajarekar\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Import Duty On Luxury Electric Vehicles Can Be Increased To 28% - Trak.in - Indian Business of Tech, Mobile & Startups","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/","og_locale":"en_US","og_type":"article","og_title":"Import Duty On Luxury Electric Vehicles Can Be Increased To 28% - Trak.in - Indian Business of Tech, Mobile & Startups","og_description":"An Indian tax panel has proposed sharp increases in consumer levies on luxury electric vehicles (EVs) priced above $46,000, a move that could hit brands like Tesla, Mercedes-Benz, BMW, and BYD. Prime Minister Narendra Modi is pushing tax reforms that encourage Indians to buy domestic goods, even as U.S.\u2013India ties strain over tariffs. India Proposes […]","og_url":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/","og_site_name":"Trak.in - Indian Business of Tech, Mobile & Startups","article_published_time":"2025-09-04T06:44:06+00:00","article_modified_time":"2025-09-04T06:44:41+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg","type":"image\/jpeg"}],"author":"Radhika Kajarekar","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Radhika Kajarekar","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/","url":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/","name":"Import Duty On Luxury Electric Vehicles Can Be Increased To 28% - Trak.in - Indian Business of Tech, Mobile & Startups","isPartOf":{"@id":"https:\/\/trak.in\/stories\/#website"},"primaryImageOfPage":{"@id":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#primaryimage"},"image":{"@id":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#primaryimage"},"thumbnailUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg","datePublished":"2025-09-04T06:44:06+00:00","dateModified":"2025-09-04T06:44:41+00:00","author":{"@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/3d6ff61ba47715670139663cc4767b1c"},"breadcrumb":{"@id":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#primaryimage","url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg","contentUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg","width":1280,"height":720},{"@type":"BreadcrumbList","@id":"https:\/\/trak.in\/stories\/import-duty-on-luxury-electric-vehicles-can-be-increased-to-28\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/trak.in\/stories\/"},{"@type":"ListItem","position":2,"name":"Import Duty On Luxury Electric Vehicles Can Be Increased To 28%"}]},{"@type":"WebSite","@id":"https:\/\/trak.in\/stories\/#website","url":"https:\/\/trak.in\/stories\/","name":"Trak.in - Indian Business of Tech, Mobile & Startups","description":"Trak.in is a popular Indian Business, Technology, Mobile & Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups & Social Media Space","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/trak.in\/stories\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/3d6ff61ba47715670139663cc4767b1c","name":"Radhika Kajarekar","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f1db673eec2bc1089f0cb5aabbc342d28aa6e57f0b0ade5099ce322f0a984358?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f1db673eec2bc1089f0cb5aabbc342d28aa6e57f0b0ade5099ce322f0a984358?s=96&d=mm&r=g","caption":"Radhika Kajarekar"},"url":"https:\/\/trak.in\/stories\/author\/radhika-kajarekar\/"}]}},"jetpack_featured_media_url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Untitled-design-12-1280x720-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1299787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/comments?post=1299787"}],"version-history":[{"count":1,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1299787\/revisions"}],"predecessor-version":[{"id":1299798,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1299787\/revisions\/1299798"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media\/1299797"}],"wp:attachment":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media?parent=1299787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/categories?post=1299787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/tags?post=1299787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}