Budget for 2018-19 May promote electric vehicles; Centre may lower GST and pass benefits to buyers
The Centre may dole out incentives to promote electric vehicles in the country by contemplating lower GST and extending tax benefit for buyers in this week’s Budget for 2018-19, say sources.
The statement is expected in light of the governments aim to have 100 percent electric vehicles for public freedom and 40% for private mobility by 2030.
“Finance Minister Arun Jaitley may announce tax advantages for the electrical mobility from the Budget about 1 February 2018, as there has been a good deal of brainstorming so far,” industry sources said.
The authorities may decrease the Goods and Services Tax (GST) on electrical vehicles from existing 12 percent to 5 percent, they said, adding that there may also be income tax advantages for enthuse buyers to make electric vehicles a workable and alluring alternative.
These announcements are likely as these are earnings neutral exercise since the sale of electric vehicles is not even one percent of the total sales of vehicles, including commercial vehicles and two-wheelers, in India, sources included.
Earlier this week, Power and New and Renewable Energy Minister R K Singh had made a case for tax incentives for electrical freedom and said, “I think we also must provide some incentives to electric cars and vehicles.”
The ministry had also indicated that the government may procure smaller cars for below its e-mobility programme for its departments and ministries.
He’d stated, “Presently, we’ve (procured) sedan kind electric vehicles (cars). I think we also need to begin thinking about smaller cars.”