SMEV pushes for 5 per cent reduction in GST in the upcoming union budget session in 2018-19
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SMEV pushes for 5 per cent reduction in GST in the upcoming union budget session in 2018-19

Team Evo India

SMEV pushes for 5 per cent reduction in GST in the upcoming union budget session in 2018-19

The Society of Manufacturers of Electric Vehicles (SMEV) has appealed for a 5 per cent reduction in GST for EVs and EV components from the Government. With the Government’s tall ambition for all-electric mobility by 2047 and converting public transport fully electric by 2030 across India, SMEV feels that hurdles like high GST, high tax and import duties pose as big obstacles for public to buy EVs.

Apart from the reduction in GST, the SMEV has other proposals for the Government as well regarding the EV and EV components. It has also asked for an income tax rebate for consumers who buy electric vehicles and that many countries like France, Canada, Norway and Netherlands have instigated. As a result the move has encouraged its citizens to buy more EVs. The SMEV is also asking for a longer period of FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) policy up to 6 years instead of the shorter period of 6 months to one year. The first meeting was held in May 2015 and since then 13 projects have been approved by the Project Implementation & Sanctioning Committee (PISC) under the FAME scheme. A total of 9 meetings have been held, the latest one being held in December last year.

Additionally the import duties for electric vehicle components like controllers and DC-DC convertors should be zero per cent for first three years, 10 per cent in fourth year and 20 per cent in sixth year, says SMEV. This, they say, will give some breather for local manufacturing industries to gear up for their operations. The SMEV is hoping that the Government will take consider its proposal and implement them in the upcoming union budget session of 2018-19.

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