AutomobileTesla will get import duty exemption on investing in India

Tesla will get import duty exemption on investing in India


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New Delhi| The government may consider giving Tesla other exemptions as well as reducing import duties. But for this, the electric vehicle company will have to invest in setting up manufacturing plants in the country.

Tesla had earlier urged the Center to reduce import duties on electric vehicles. It is looking to bring its latest electric vehicles as a completely built unit before looking at its assembly and manufacturing ring in India.

An official source said that if the government decides to manufacture its cars in the country. And if it decides to invest in setting up the plant, the government will consider the request.

However, the official made it clear that any decision on the matter or extension of exemption would apply to the entire sector and not just a particular company.

The central government along with some other state governments have already taken several steps to promote electric vehicles in the country.

Along with promoting the manufacture of electric vehicles in the country, the government has also been taking tax benefits on the purchase of electric vehicles.

Musk recently said that his electric vehicle (EV) company wants to launch cars in India. But the country’s import duty on EVs is by far the highest in the world. Import duties are among the highest in the world of any major country.

Currently, India levies 60 per cent duty on imported cars costing less than $40,000 and 100 per cent on cars priced above $40,000. This fully built unit makes imported cars twice as expensive as in many foreign markets.

Let us tell you that in order to promote electric vehicles in the country, the government has reduced the GST on such vehicles from 12 percent to 5 percent. GST on chargers/charging stations of electric vehicles has been reduced from 18% to 5%.

Apart from this, the Ministry of Road Transport has issued a notification advising the states to waive off road tax on electric vehicles. Which in turn will help in reducing the initial cost of electric vehicles.

–IANS

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