Budget for 2018-19 could Market electric vehicles; Centre Can lower GST and pass Advantages to buyers
The Centre may distribute incentives to market electric vehicles from the country by contemplating lower GST and extending tax advantage for buyers in this week’s Budget for 2018-19, say sources.
The announcement is likely in view of the authorities aim to get 100 percent electrical vehicles for public freedom and 40 percent 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’s 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 present 12 percent to 5 percent, they said, adding that there could also be income tax benefits to enthuse buyers to make electric vehicles a viable and alluring option.
These statements are probably as these are earnings neutral exercise because the sale of electric vehicles isn’t even 1 percent of the total sales of vehicles, including commercial vehicles and two-wheelers, in India, sources included.
Before this week, Power and New and Renewable Energy Minister R K Singh had made a case for tax incentives for electric mobility and said, “I believe we also must provide some incentives to electric cars and vehicles.”
The ministry had also indicated that the authorities may procure smaller cars for below its e-mobility programme for its branches and ministries.
He had said, “Currently, we’ve (procured) sedan kind electric vehicles (cars). I think that we also ought to start thinking of smaller cars.”