The nodal body of electric vehicle manufacturers in India- The Society of Manufacturers of Electric Vehicles (SMEV)- has demanded that the government should cut the GST rate on batteries used in electric vehicles (EV) from the current 28%. In India, both EV and batteries are charged at the same tax rate. According to SMEV, the high tax rate is the biggest hindrance to the adoption of electric vehicles in the country.
“GST reduction is critical to achieve Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) policy targets and galvanize e-vehicle industry. In order to support the government’s ambitious vision of selling only e-vehicles in the country by 2030, and to help the industry grow at a faster pace, SMEV expects the government to take immediate remedies and proactive measures which have been identified by SMEV and were also known to the government,” said Sohinder Gill, Director, Corporate Affairs, SMEV.
He pointed out that adequate fund allocation is needed in Budget 2018-19 to streamlining and ironing out policy details to shift to e-mobility.
Launch of next phase of FAME Scheme for a longer period of 6 years and its time-bound implementation
Reduction of GST on Advanced Battery used in EVs
Rebate on Income Tax for consumers adopting Electric Vehicles
Indigenization of EV components. India having a less number of EV manufacturers needs more indigenization to stand equal to other countries.