New Delhi, Jul 5: Moves like reduction of GST from 12 to 5 pc on Electric Vehicles (EV) and Tax benefits upto Rs 1.5 lakh on loan will make EVs affordable for consumers, stated the industry.
Electric buses manufacturer Olectra Greentech Executive Director Naga Satyam said, “With this budget Government has made it amply clear that EV manufacturing is the next big thing in its vision. Now, it is the responsibility of the industry to rise to the expectations of the Government and work towards more localisation.” “The announcements on Electric Vehicles (EVs) in the Union Budget 2019-2020 bring cheers to both consumers as well as e-vehicle manufacturers. Decision on incentivising EV manufacturing will help in the creation of a local manufacturing base and encourage component manufacturers to invest in the sector. Additionally, bringing down custom duty on lithium-ion cells to nil would further cut down the cost of batteries and help local battery manufacturers to scale-up the business," said Society of Manufacturers of Electric Vehicles (SMEV) in post budget reaction.
"Consumer adoption of this technology not only requires education and mindshift but also an attractive and feasible overall proposition. I think proposing of lowering of GST and providing deduction of tax on interest on loans, outlay for infrastructure for battery charging stations, push towards Make in India initiative is just the kick start measures required," said BattRE electric mobility Pvt Ltd Founder Nishchal Chaudhary.
“The Union Budget 2019-20 is very progressive and growth-oriented. Emphasis on FAME II initiative and pushing EV infrastructure will help in attracting investment for local manufacture of components which will further strengthen Make in India initiative and ensure clean and green energy over time. With emphasis on offering upfront incentive on purchase of EVs and the push to power availability, we expect more buyers of two-wheeler vehicles to shift preference to electric two-wheelers which in turn will help the EV industry’s growth," said Okinawa Autotech Pvt. Ltd. Founder & Managing Director Jeetender Sharma.
"With Rs 80,250 crore dedicated to building 125,00 km of roads in the next 5 years, the Budget has also heavily focused on construction and development of roads which will be another boost towards demand from rural economy. This will positively impact the two-wheeler industry in rural sector and increase pick-up of Electric two-wheelers," he said.
"The Government’s mission to bring e-mobility revolution to India by 2030 is a truly commendable and will provide the much needed impetus to the industry. As the government gears up for clean and green mobility, we are hopeful that India will emerge as one of the leading manufacturing hubs for electric vehicles," he added.
"The budget announced by the Finance Minister for 2019-20 will catalyse India’s journey to electrification and will be beneficial for both, the e-mobility industry as well as consumers who are looking to make the shift to electric vehicles. Lowering GST rates on electric vehicles to 5 pc will make EVs more attractive to the buyer in the future. In addition, incentives on income tax will also increase the momentum for the sector. We welcome the new budget and trust that this will encourage faster adoption of e-mobility in India,” added CEO and Co-Founder, 22KYMCO Parveen Kharb.
Minister of Finance and Corporate Affairs Nirmala Sitharaman in her maiden Budget in Parliament on Friday said the government has already moved GST council to lower the GST rate on electric vehicles from 12 per cent to 5 per cent.
Also to make electric vehicles affordable to consumers, the Union Budget proposed additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles. This amounts to a benefit of around Rs 2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicle.
The Budget also further incentivised e-mobility by exempting customs duty on certain parts of electric vehicles. (UNI)