Niti Aayog CEO Amitabh Kant said the Center will soon make a final decision on Tesla’s proposal to reduce import duties on electric vehicles.
Look at the photosTesla seeks to reduce import tax on electric vehicles from the Indian government
The Indian government will soon make a decision on Tesla’s proposal to cut import taxes on electric vehicles before the company enters the Indian car market. Niti Aayog CEO Amitabh Kant said the electric vehicle maker’s proposal to cut taxes was being evaluated and a decision would be made soon. He said that the final decision will be made by the Department of Revenue of the Ministry of Finance. As reported by ETAuto, the Center is currently discussing a temporary import tax reduction slated for three years, but Tesla must also submit a corporate business plan.
Also read: Tesla asked to increase localization, share India plans before tax evasion
The Ministry of Heavy Industry and the Ministry of Finance have previously asked Tesla to increase localization and share development plans along with a review of car assembly in the country, before seeking any relief measures. from the government.
Chief Executive Officer Niti Aayog said the final decision would be made by the Finance Ministry.
The California-based manufacturer has urged the government to reduce import duties on electric vehicles. In its offer to the government, the electric vehicle maker argued that lowering import duties to 40% would make them more affordable and boost sales. In addition, the company also asked the government to see if the 10% social welfare surcharge could be waived.
Also read: Tesla India Officials Meet with Minister of MoRTH in Delhi, Test Drive a Model 3
Tesla wants to start selling imported cars in India this year, but says taxes in the country are among the highest in the world. India levies an import tax of 60% on electric vehicles priced at $40,000 or less and 100% tax on those priced above $40,000. CEO Elon Musk has previously said that Tesla would consider opening a factory in India, if it sees success with imports.
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