New Delhi: The Union government has once again made it clear that it will not reduce the import duty imposed on electric vehicles. The minister of state for heavy industries Krishan Pal Gurjar in a reply to a question raised in Lok Sabha said that there cannot be situation where the market is India, but jobs are created in China. He also said that Tesla is yet to apply for schemes as per the government’s policy.
Leading electric vehicle manufacturer, Tesla had earlier requested the Union government to allow tax discounts for import of electric cars. The company said that the rules allow bringing in partially-built vehicles and assembling them locally at a lower tax.
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At present, the import duty is 110% on electric vehicles with customs value above $40,000. The import tax is 60% on electric vehicles with customs value less than $40,000. The company requested the government to reduce it to 40% irrespective of the customs value and withdraw the social welfare surcharge of 10 per cent on electric cars.
Earlier, Tesla founder and CEO Elon Musk said that the company is facing a lot of challenges with the Indian government to launch their cars in the country. In 2020, Musk announced plans to open the production of Tesla electric vehicles in India and a subsidiary Tesla India Motors and Energy Private Limited was established in Bengaluru. Elon Musk had announced the launch of his company’s ‘Model 3’ car in India in the year 2017. The pre-bookings started in 2016 and it was later dropped.
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