Govt Cuts Duty On EV, As Electric Vehicles are becoming popular every day due to its eco-friendly nature, Government is taking many initiatives towards the development of EVs in the country. As manufacturers of EV were imposed high customs duty on EV components or the whole the EV. There was a deep concern among the makers of EVs to lower down the tax so that they can manufacture and import the EV products in more numbers contributing to the eco-friendly mobility in the country.
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Govt Cuts Duty On EV To 10 to 15%
The Government on Tuesday announced that the customs duty on import of parts and components of EV will be lowered to 10 to 15% before it was 15 to 30%. A separate section is created for the Electric vehicle’s parts and components by the Central Board Of Indirect Taxes and Customs (CBIC). The category will state the lowered of customs duty to 10-15 percent.
In a Government notification, Govt Cuts Down Customs Duty On EV Parts
Electrically operated vehicles, if imported, In a Knocked Down kit containing all the necessary components, parts or subassemblies, for assembling a complete vehicle with,
(a)disassembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake system, Electric Compressor not mounted on chassis will have 10%.
(b)pre-assembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake System, Electric Compressor not mounted on a chassis or a body assembly will have 15%.
Fully Built Electric Vehicle Will Have 25% Import Duty And Conventional Vehicles 100%
Government official said the fully built electric vehicle will have 25% import duty and the other petrol-diesel engines will face up to 100%. CBIC Doubled 20% duty on battery packs for mobile phones.
“The discontinuation of concessional customs duty on battery packs for mobile phones and exemption on batteries for electrical vehicles seems to clearly recite the govt’s leitmotif of the make in India initiative. Also, a lower rate of customs duty on goods imported for as assembling electric vehicles in India vis-a-vis the conventional vehicles, would give a boost to electric vehicle assembly in India,” said Abhishek Jain, the tax partner at consulting firm EY.
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