To promote the purchase of electric vehicles the National Democratic Alliance government will offer exemption of income tax worth ₹1.5 lakh for buying electric vehicles. Focus will also be given to manufacturing of lithium ion batteries in India. Customs duty for import of certain parts of electric vehicles have also been reduced to promote electric mobility.
The proposal was tabled by finance minister Nirmala Sitharaman during her budget speech.
According to the minister, the income tax exemption will account for a save of ₹2.5 lakh for a customer during the entire period of purchase.
“We want lot develop India as a manufacturing hub for electric vehicles and want to encourage the purchase of these vehicles. The govt will provide income tax exemption of ₹1.5 lakh to the owners of electric vehicles. customs duty is also being exempted for certain components of electric vehicles," said Nirmala Sitharaman.
Yesterday the Economic Survey suggested that the government should aim to develop India into a manufacturing centre for electric vehicles (EVs) and related components on the lines of the US automotive hub of Detroit.
This would accelerate adoption of electric mobility in India and ensure the development of a proper ecosystem for such eco-friendly vehicles.
Recently the NITI Aayog and other ministries have been working on a proposal to ban Electric two wheelers under 150 cc by 2025 and three wheeler by 2023.
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