(Excerpt)
The Indian government is reportedly looking to cut goods and
services tax (GST) on electric vehicles (EVs) by 5-12% to encourage
their uptake, reports the Economic Times. "There is a
proposal to cut tax rates on EVs among other issues," said a senior
government official with knowledge of the matter. The government
council will discuss the proposal in a meeting tomorrow (20
June).
Significance: Several measures, including tax
cuts and incentives for EVs, are being contemplated by the
government in line with its goal to expand the use of EVs in the
coming years. Recently, the Niti Aayog policy think-tank proposed a
new EV road map that suggested that all vehicles sold in India
after 2030 should be electric. A reduction in GST would have the
aim of boosting the manufacture of EVs in the country and
encouraging key automakers to set up Indian vehicle production
plants.
