New Delhi. American giant Tesla, which makes electric cars, has demanded a reduction in import duty on electric vehicles in India. The Modi government has given an answer regarding this issue. The Ministry of Heavy Industries has asked Tesla to first start manufacturing its electric vehicles (EVs) in India, only after that any tax exemption can be considered.
Government sources said the government is not giving such exemptions to any auto firm and giving duty benefits to Tesla would not augur well for other companies investing billions of dollars in India.
Musk had said – Import duty in India is the highest in comparison to any major country in the world.
In July, Tesla CEO Elon Musk tweeted that he was expecting temporary tariff relief for electric vehicles. Musk had said that Tesla wants to launch its cars in India soon, but the import duty in India is higher than any major country in the world!
Also read- India Forex Reserves: Foreign exchange reserves reached record level, know how many dollars deposited in the country’s treasury
Demand to withdraw 10 percent social welfare surcharge
At present, cars imported as Completely Built Units (CBU) attract customs duty ranging from 60 to 100 per cent depending on the size of the engine and the Cost, Insurance and Freight (CIF). The US company has urged the government to standardize the duty on electric cars beyond custom duty value to 40 per cent and withdraw the social welfare surcharge of 10 per cent on electric cars.
Also read- Common man will get a shock! CNG prices may increase by 10-11 percent next month
Union Road Transport and Highways Minister Nitin Gadkari has said that given the thrust on e-vehicles in the country, Tesla has a golden opportunity to set up its manufacturing plant in India.
Read Hindi News online and watch Live TV News18 on Hindi website. Know news related to country and abroad and your state, Bollywood, sports world, business.