Government lowers import duty on EV components

Team OD Updated: January 31, 2019, 07:20 PM IST

In another new initiative to promote the use of electric vehicles in India, the Government has lowered the import duties on EV components. Customs duty on these parts will now be charged at 10 to 15 per cent, down from the earlier 15 to 30 per cent.

This move has been possible because the Central Board of Indirect Taxes and Customs has now created a separate category for parts and components of electric vehicles. Items fitting the criteria set for this category will incur the new duties.

2018 Nissan Leaf Exterior Image

Also, the CBIC has removed the exemption on car battery packs. These will now face a five per cent import duty. The import duty on mobile phone batteries has been doubled form 10 to 20 per cent. This move seems to be a way to encourage local manufacturing of these parts.

The import duty cut is a positive step towards addressing one of the biggest hindrances towards the proliferation of EVs in India, their high cost. The government is also taking pointed steps towards improving infrastructure for these vehicles. These initiatives will have to work hand-in-hand to grow EVs in India.

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