Union Budget 2019 reaction: Lowering GST on electric vehicles to encourage faster adoption of e-mobility in India, 22KYMCO India
Finance Minister Nirmala Sitharaman presented the Union Budget 2019 today. The Budget 2019 covered the topics of efficient public transportation, alternate methods of commute for commercial vehicles, national transport card for universal payment of tolls, tickets for road and rail and retail shopping. It also covered the national highway development plan that will further improve connectivity in the country. Most importantly, the Indian Government will be reducing the GST on electric vehicles from 12 per cent to 5 per cent. This move is being seen as a big step in favor of sales of EV cars in India. Also, the government has announced a deduction of Rs 1.5 lakh on the loan interest to purchase an electric vehicle in India. Here's a reaction by Parveen Kharb (CEO and Co-Founder, 22KYMCO).
"The budget announced by the Finance Minister for 2019-20 will catalyse India's journey to electrification and will be beneficial for both, the e-mobility industry as well as consumers who are looking to make the shift to electric vehicles. The budget has a strong synergy with the FAME II scheme and the announcement will generate a positive sentiment. Lowering GST rates on electric vehicles to 5 per cent will make EVs more attractive to the buyer in the future. In addition, incentives on income tax will also increase the momentum for the sector. We welcome the new budget and trust that this will encourage faster adoption of e-mobility in India."