Business Today

Govt lowers import duty on parts and components of electric vehicles to 10-15%

Until now, vehicle parts and components imported for assembly in India attracted import duty of 15 to 30 per cent.

twitter-logo PTI        Last Updated: January 30, 2019  | 08:38 IST
Govt lowers import duty on parts and components of electric vehicles to 10-15%

To promote domestic assembling of electric vehicles, the government Tuesday lowered customs duty on import of parts and components of such vehicles to 10 to 15 per cent.

Until now, vehicle parts and components imported for assembly in India attracted import duty of 15 to 30 per cent.

Also Read: Reserve Bank to infuse Rs 37,500 crore through OMO in February

The Central Board of Indirect Taxes and Customs (CBIC) has carved out a separate category for parts and components of electric vehicle for which customs duty has been lowered to 10-15 per cent.

Further, the CBIC has removed customs duty exemption to battery packs for electric vehicles and also doubled the duty on battery packs for mobile phones.

Henceforth, import of battery packs for electric vehicles will attract 5 per cent tax. Customs duty on battery packs for mobile phone has been doubled to 20 per cent.

The new rates of duties will come into effect from Wednesday, the CBIC said.

EY Tax Partner Abhishek Jain said, "These customs duty rate rationalisations while may increase the cost of import of these goods, but should definitely boost the 'Make in India' initiative of the government.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close