EV Budget Explained for 2019
The Indian government has finally decided to put EV in the center stage by reducing VAT on electric vehicles from 12% to 5% and charging stations from 18% to 12%. In addition, the EV budget explained for 2019 purchase of electric buses by the municipalities is exempt from VAT. The changes will come into force on 1st August 2019. The VAT on petrol and diesel remains at 28 percent. With the tax cut, the Indian government wants to reduce the price difference between the two types of power in order to make electric cars more affordable.
To promote EV the Union budget has announced a number of incentives plans including tax incentives for manufacturers and buyers. Those purchasing electric vehicles will get an additional benefits in income tax deduction of almost Rs 1.5 lakh on the interest paid on loans taken to buy EVs. finance minister Nirmala Sitharaman said, “This amounts to a benefit of around 2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicle,” The government is now keen to push tax changes on the indirect taxes side to complement the measures taken in the budget.
However, an exemption from the registration fee for electric vehicles, which was discussed in June, was not decided. Reports are still in the room to increase the registration fee for gasoline and diesel. However, the Federal Bureau of Indirect Taxes (abbreviated to GST) has made the condition that the vehicles have at least 12 seats eligible for the tax exemption for electric buses. The Indian government wants to promote not only renewable energy, but also clean traffic. The proposal was discussed in the recent meeting of the GST Council whci was later addressed by the fitment committee for examination. Official think tank Niti Aayog has prepared a roadmap that envisages all vehicles sold after 2030 being electric. The roadmap lays down that all two-and three-wheeler’s should go electric from 2023 and all commercial vehicles from 2026. To speak out loud this is indeed a great step towards the future of Electrical Vehicles in both ways; dealership for electric vehicles and customers looking to buy their next electric car or electric bikes Ebyks and even commercial vehicles .EV Budget explained for 2019.