New Delhi : Auto industry body SIAM has suggested a reduction of GST on such automobiles to five per cent, besides a one-time income tax (I-T) deduction of 30 per cent of the vehicle price for non-financed buyers.
In a white paper submitted to the government, SIAM also mooted exemption of road tax for EVs, while stating that a multi- pronged, segment and customer specific policy will be needed for a successful transition to electric mobility.
The policy should collectively aim at improving affordability and acceptance of electric vehicles by bridging viability gap; enabling charging infrastructure build-out; encouraging domestic manufacturing and creating public awareness besides providing other enablers, it said. “Demand incentives or cash subsidies can at best be a short-term measure to kick-start the process. However, tax rebates and other fiscal and non-fiscal measures can be sustained over a longer term and will have a greater impact and outreach,” the SIAM paper said.
