pennews
www.pennews.net
 Reduction in GST is positive move: Hero Electric CEO
Business

Reduction in GST is positive move: Hero Electric CEO

Agency News

Hyderabad, Jul 27 : Reduction in GST is a very positive and a welcome move, as it will reduce the prices by 7 per cent, said Sohinder Gill, CEO of Hero Electric India while responding on GST reduction on electric vehicles.

This move also sends clear signals to the Industry on governments seriousness in promoting EVs, he said, however, even after the GST reduction, the prices of the affordable segment EVs will still be much higher than IC engine vehicles and will remain the biggest stumbling block for purchase.

The Industry and the Government must work together to create price parity for at least 2 to 3 years so as to trigger mass adoption, he said. Some of the steps requested by SMEV are- Subsidy on all the EVs should be INR 20000/Kwh of battery as it is for the buses; financing by Public sector banks; mandating businesses that use polluting vehicles for their operations to switch to electric and a major awareness campaign on the benefits of EVs by the Government under "Swachh Bharat" initiative.

The GST on the spares batteries is still 18 per cent and that should also be brought down to 5 per cent to ensure that the EV users continue to enjoy the low running cost advantage, he added.(UNI)