NEW DELHI: The Government said it’s not currently considering reducing taxes on imported electric vehicles, a stance that could delay Tesla Inc.’s plan to enter the market.
“Presently, there is no proposal either to provide an exemption from local value addition cost or to provide a subsidy on the import duty on electric vehicles in India,” Som Parkash, junior minister of the Ministry of Commerce and Industry, told Parliament late on December 13.
Parkash said existing policies under the government’s Make-in-India push are aimed at encouraging domestic and foreign investment in the EV industry. The government launched a $3.1 billion incentive program in 2021 to boost local EV production. In addition, it’s offering incentives to companies that want to build batteries in India under a $2 billion program.
The Government’s statement is an unexpected turn considering it was working on a policy that would have allowed international companies to import electric cars on concessional tax rates if they commit to eventually manufacturing in India, Bloomberg News reported last month.
