Notification of 15% tax concession on import of electric vehicles

The Government of India has issued a new policy to allow tax concession of up to 15% for electric cars imported from abroad into India, subject to certain conditions.

This announcement will benefit companies like Tesla and Vinfast and if Ford India announces new investment plans then the company can also benefit.

important terms

  • A minimum investment of Rs 4,150 crore or USD 500 million should be implemented in India within the next 3 years to increase local manufacturing capacity.
  • There is no limit regarding maximum investment.
  • 15 per cent customs duty for five years (applicable on CKD) on vehicles with cost, insurance and freight (CIF) value of more than US$ 35,000 (more than Rs 29 lakh) if the manufacturer sets up a factory in India within 3 years. Will be imposed. Year.
  • But tax relief for 5 years will be available only if 25% components are manufactured locally in the 4th year and 50% components are manufactured locally in the 5th year.
  • The duty charged on the total number of electric vehicles allowed for import is either the capital invested or Rs. 6,484 crore (equivalent to the incentive given under the PLI scheme), whichever is less.
  • An investment of USD 800 million (over Rs 66,000 crore) or more will allow a maximum of 40,000 EVs or 8,000 vehicles per year.

It has been announced that electric car manufacturers in the Indian market can bring their models in the Indian market by following these key conditions. Since this announcement comes amid Tesla’s continuous demand for tax incentives, information about Tesla’s Indian plant may be revealed soon.

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