Taxes On Electric Vehicles Slashed By 72%; Tesla Cars Will Hit Indian Roads By 2020
In a big push towards electric mobility, Indian Govt. has decided to introduce massive tax reductions for electric vehicles, and for the infrastructure required for running electric vehicles.
Tax reductions upto 72% has been announced for the same.
Meanwhile, Tesla founder Elon Musk has declared that their electric cars will hit the Indian roads by 2020.
Musk also shared the reasons why their company has not been able to come to India.
Will Govt. respond now?
Taxes On Electric Vehicles Slashed By 72%
The GST Council has decided to slash taxes on electric vehicles by a huge margin.
Currently, electric vehicles are taxed at 12%, which has now been reduced to 5%.
Meanwhile 18% tax on EV chargers has been now reduced to 5%, which is a reduction of 72% in the effective tax rate.
EV Chargers are one of the most crucial support appliances for running electric vehicles, and this single step can trigger new growth in the sale of EV vehicles.
Besides, GST on EV buses have been scrapped all-together.
In a statement, GST Council said, “Hiring of electric buses (with a carrying capacity of more than 12 passengers) by local authorities to be exempted from GST.”
As per some members of the GST Council, three states in India are opposing full-fledged usage and adoption of electric vehicles: Punjab, Delhi and West Bengal.
Reportedly, these states are afraid that EV vehicles will reduce their revenue collection.
At the same time, these three states are ignoring the benefits which EV vehicles will bring in, vis-a-vis to reducing pollution, and generating employment.
Can EV Vehicles Generate Jobs?
Automobile sector in India is right now facing an unprecedented crisis, wherein 10 lakh+ jobs can be lost, and millions of people will be left unemployed.
Sale of cars in India have slowed down, and big auto companies such as Tata, Maruti, Mahindra, Honda, Ashok Leyland and others are temporarily shutting down their factories to save money.
In such a scenario, EV vehicles can trigger that push which this industry needs, and can generate jobs. Reduction in taxes for EV vehicles, and EV chargers is the right step, in the right direction.
Tesla Cars Will Hit Indian Roads By 2020
Meanwhile speaking with IIT Madras’ Avishkar Hyperloop Team, Elon Musk has expressed confidence that Tesla cars can hit Indian roads as soon as 2020.
Indirectly, he blamed existing Govt. policies on import of automobile parts and manufacturing as one of the reasons why the delay is happening.
He said, “Would love to be in India. Some challenging government regulations, unfortunately. Deepak Ahuja, our CFO, is from India. Tesla will be there as soon as he believes we should.”
This team of Indian students from IIT Madras was the only Asian team to have qualified for SpaceX Hyperloop Pod Competition 2019.
We will keep you updated, as more details come in.