Budget expectations: Electric Vehicles sector

24 Jan 2022 , 10:02 AM

Akash Gupta, Co-founder and CEO, Zypp Electric, says,”India is undergoing a massive EV revolution — which will get a further boost in 2022 following the rapid growth of charging infrastructure and advanced EV models. We are optimistic that the government will announce new initiatives to encourage local EV manufacturing, facilitate easy finance, and create an innovative EV ecosystem.

With that said, we urge the government to reduce GST on EV purchases and rentals from 5% to 2%. A reduced GST would allow consumers to smoothly shift to EV. The Finance Ministry can also reduce taxes levied on loans taken to purchase an EV. GST reduction and tax benefits would play a crucial role in making EVs accessible to everyone. Additionally, the government can also subsidise electricity pricing for EV charging to further improvise the existing EV charging infrastructure.”

The author of this article is Mr. Akash Gupta, Co-founder and CEO, Zypp Electric

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com