India gears import taxes for domestic EV assembly
The Indian government has lowered import duty on parts of electric vehicles from 15-30 per cent to 10-15 per cent, effective January 30. At the same time, the Central Board of Indirect Taxes and Customs (CBIC) is now charging customs duty for battery packs for EVs, which were previously exempt.
Both moves make sense in the light of the government’s investment in battery production within India with a new factory being built and three more in planning. India is gearing up EV infrastructure and specifically domestic production of electric two and four-wheelers now being manufactured in the country.
While parts and components for EVs enjoy lower import duties, these will rise for batteries coming into the country: Batteries for electrically operated vehicles, including two and three-wheeled electric motor vehicles, will now be charged 5 per cent import duty from nil earlier.
Similarly, a rise from 10 to 15 per cent duty goes imported vehicles with pre-assembled battery packs, motors, motor controllers, chargers, power control units, energy monitor contractors, brake systems, electric compressors not mounted on a chassis or a body assembly.
What remains the same is the 10% import duty charged for the import of electrically operated vehicles as knocked down kit with disassembled battery pack, motor, motor controller, charger, power control unit, energy monitor contractor, brake system, electric compressor not mounted on chassis.
Electrically operated motor cars and other motor vehicles will attract 100 per cent duty if the cost, insurance and freight is over $40,000 and 60 per cent duty for vehicles with a value lower than $40,000.
Source :- Electrive.com
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