India is considering slashing import duties on electric cars to as low as 40%, two senior government officials told Reuters , days after Tesla Inc’s appeals for a cut polarised the country’s auto industry.
For imported electric vehicles (EVs) with a value of less than $40,000 including the car’s cost, insurance and freight, the government is discussing slashing the tax rate to 40% from 60% presently, the officials told Reuters . For electric vehicles valued at more than $40,000, the government is looking at cutting the rate to 60% from 100%, they said.
The government is in favour of a cut if it can see companies such as Tesla providing some benefit to the domestic economy — manufacture locally, for example, or give a firm timeline on when it would be able to, one of the officials said.
“Reducing import duties is not a problem as not many EVs are imported in the country. But we need some economic gain out of that. We also have to balance the concerns of the domestic players,” the official said.
