An official source said the government would consider the request if Tesla decides to manufacture its cars in the country and invest in setting up the plant.
Tesla Electric Car (symbol photo)
The government may consider reducing import duty along with other exemptions to Tesla, but for this the electric vehicle company will have to invest in setting up a manufacturing plant in the country. Tesla had earlier urged the Center to reduce import duties on electric vehicles. It wants to bring its latest electric vehicles as a fully developed unit before seeing its assembly and manufacturing ring in India.
An official source said the government would consider the request if Tesla decides to manufacture its cars in the country and invest in setting up the plant. 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 has 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 giving tax benefits on the purchase of electric vehicles.
Elon Musk had demanded reduction in import duty
Elon 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. The import duty is the highest in the world compared to 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 completely built unit makes imported cars twice as expensive as compared to many foreign markets.
Electric vehicles are being promoted in India
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. The GST on chargers/charging stations of electric vehicles has been reduced from 18 percent to 5 percent. 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.
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