NITI Aayog CEO Amitabh Kant said the Center will soon take a final call on Tesla’s proposal to reduce import duty on electric vehicles.
see photosTesla urges Indian government to drastically reduce import duty on electric vehicles
The Indian government will soon take a final call on Tesla’s proposal to cut import duty on electric vehicles ahead of its entry into the Indian car market. NITI Aayog CEO Amitabh Kant said the EV manufacturer’s proposal to cut tariffs is being evaluated and a decision will be taken soon. He said that the final decision will be taken by the Revenue Department of the Finance Ministry. As reported by ETAuto, the center is currently discussing a temporary reduction in import duties for three years, but Tesla will have to submit concrete business plans for that.
Read also: Tesla asked to increase localization, share India plans before getting tax break
The Ministry of Heavy Industry and the Ministry of Finance had earlier asked Tesla to consider local assembly of cars, as well as increase localization and share ramp-up plans, before seeking any relief from the government.
The final decision will be taken by the Department of Revenue, Ministry of Finance, NITI Aayog CEO said
The California-based manufacturer had urged the government to reduce import duties on electric vehicles. In its pitch to the government, the EV maker argued that reducing import duty by 40 per cent would make them more affordable and boost sales. Besides this, the company also asked the government whether the 10 per cent social welfare surcharge could be waived.
Read also: Tesla India executives meet MoRTH secretary in Delhi, take a test drive in 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 imposes an import duty of 60 percent on EVs costing $40,000 or less and 100% on those costing more than $40,000. CEO Elon Musk had earlier said that Tesla would consider opening a factory in India if the imports were successful.
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