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SMEV Seeks 5% GST Reduction in 2018-19 Union Budget

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SMEV (Society of Manufacturers of Electric Vehicles) has appealed to the Central Government ahead of the 2018-19 Union Budget for a GST reduction of 5% in case of electric vehicles and EV components. The Government is targeting total electric mobility by the year 2047 and is looking to ensure fully electric public transportation systems by the year 2030 throughout the country. SMEV has opined that high taxes, GST and import duties are hurdles towards drawing the masses to purchase electric vehicles.

SMEV has also revealed several other proposals in these matters for the Government. It has already sought a rebate in income tax for consumers who purchase electric vehicles which several governments in Norway, France, Netherlands and Canada have already initiated. These decisions have spurred customers to purchase more electric vehicles and it could happen similarly in India. The SMEV is also asking for a longer FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) period in the policy up to a maximum of 6 years in comparison to the 6-12 months at present.

SMEV seeks 5% GST reduction

The first meeting took place in May, 2015 and 13 projects have garnered approval from the PISC (Project Implementation and Sanctioning Committee) as part of the FAME scheme. 9 meetings have been held in all and the last one took place in December, 2017. The import duties on EV components like the DC-DC converters and controllers should be 0% according to SMEV for the first 3 years and should be 10% in the 4th year while this could be 20% in the 6th year. This will give some relief to EV manufacturers and help them scale up operations.

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