Lower GST and income tax-free loan to boost sales of electric vehicles in the country
Budget 2019 is here and there is some good news and a bad one too. The good news is for the Electric vehicles, as the GST rate for electric vehicles is now 5% down from the previous rate of 12%. On the other hand, the bad news is the same high GST problem on conventional vehicles. Petrol and Diesel powered cars and bikes are still under 28% GST tag, hence no change in the prices.
Furthermore, the Government has offered to reduce income tax by Rs 1.5 lakh on the interest of the loan through which an electric vehicle is purchased. This is done for the very first time when a private owner of an electric vehicle will get the tax benefits (up to Rs 1.5 lakh) on the purchase of an electric vehicle. The two main changes are expected to boost the sales of electric vehicles.
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However, nothing was discussed about the installation of public charging stations in the budget 2019. The main problem which the country will face is charging facilities. Moreover, this problem cannot be solved without a proper vision. This is so because we can see the long queues oustide the CNG stations, all you need to do is just imagine if this turns out for the EVs too.
The government also reduced import custom duties on certain electrical components to boost manufacturing of EVs in India. There is also a plan to start manufacturing of lithium-ion battery cells in the country for which bidding will be done. With this the burden of importing li-ion batteries will be axed and the overall cost of EVs will come down.
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