The announcements made in the Union Budget 2019 came as a welcome sign for consumers and manufacturers of electric vehicles, alike. The electric vehicle industry in India has unanimously welcomed the government’s proposed tax benefits for electric vehicles, with expectations of a major boost in the coming years.
In addition to lowering the GST rates on electric vehicles from 12% to 5%, the government has also announced exemptions on customs duty on lithium-ion cells.
Proposed Tax Benefits For Electric Vehicles Industry In India
The most critical and talked about incentive from Union Budget 2019 has been the income tax rebates of up to INR 1.5 lakh, with a total exemption benefit of INR 2.5 lakh over the entire loan period.
With tax incentives on EVs being introduced in the previous budgets as well without bearing much fruition, it will be very exciting to see whether the current government’s tax benefits for electric vehicles introduced in Budget 2019 will see people aggressively purchase and adopt EVs in India.
Following Union Budget 2019, we had the privilege to sit down with Mr. Abhijeet Sinha, National Program Director for NHforEV2020 and Country Director, ASSAR India to take his thoughts and opinions on the tax incentives introduced in the budget and how effective they will be for the EV revolution in India.
Watch Mr. Sinha talk about the potential effects of this budget on the major stakeholders of the EV ecosystem, how Union Budget 2019 is different from the previous budgets and whether this budget lives up to the expectations from the EV industry:
For more information on India’s electric vehicle industry, you can read our article on the same, here:
Electric Vehicle Industry: Disrupting Mobility As We Know It