Union Budget 2019 India: The electric vehicle (EV) industry has demanded tax holiday for a specific period in the upcoming Budget and proposed a green cess on the polluting vehicles to be used in accelerating electric mobility. In its Budget wish list, Society of Manufacturers of Electric Vehicles (SMEV) said a notional green cess on polluting vehicles would generate massive funds and reduce the burden on the government exchequer.
This fund could be utilised in the frontloading of incentives to customers and bring electric two-wheelers prices down to the level ofpetrol two-wheelers, SMEV director-general Sohinder Gill said.
Stating that rationalisation of taxes could play a significant role to encourage customers to adopt e-mobility, Gill said the government can give relaxation from taxes for a specific period to those who go for green vehicles in the upcoming India Budget 2019. Currently, EVs are taxed at 12% and account for less than 1% of the total auto sales in India.
Nishcal Chaudhary, founder and CEO of EV start-up BattRe, said: Electric mobility needs lucrative and long-term policy support to incentivise demand on the consumer side and foster a manufacturing ecosystem to fulfil the increased demand.