Budget 2020: EV industry expects road, registration tax cut

In the upcoming Budget, the electric vehicle (EV) industry expects to see reductions in road and registration taxes for EV taxi aggregators so that they are able to develop viable public transportation alternatives.

"With ample renewable energy resources, technology, and an evolving consumer mindset, the Indian Electric Vehicle (EV) industry is on the cusp of great innovation. We believe that 2020 can be the year when EVs go mainstream. Last year's budget witnessed the government pushing the segment with multiple initiatives - be it lowering the GST on EVs or providing additional tax deductions on EV loans," Nimish Trivedi, Co-Founder of Prakriti E-mobility, said.

"We hope that the momentum continues in 2020, as the focus needs to shift from just selling to overall sustainability. In the upcoming budget, we hope to see reductions in road and registration taxes for EV taxi aggregators so that they are able to develop viable public transportation alternatives. We also hope for special permissions and reduced charges for EV aggregators for operating with kiosks around major hubs such as the airport, metro and railway stations. Promoting and encouraging widespread expansion of charging infrastructure is another key agenda item that the budget needs to address. These steps, coupled with incentives for faring passengers in EVs, will level the playing field for EV industry to compete with traditional auto players. As per an industry report, India has the potential to become one of the largest EV markets in the world and these initiatives will give the much-needed push towards this goal," he added.

Startup and entrepreneurship

"The start-up ecosystem in India has come a long way since the launch of Startup India in 2015. From the upcoming budget, we hope for incentives that will help increase the success rate of start-ups in India. Incentives such as easier tax compliance to support budding and existing entrepreneurs, an extension of tax incentives to incubators and tax benefits on ESOPs are certain measures that will help entrepreneurs maintain cash flow, acquire talent and eventually help achieve better valuation and funding. We also hope to see incentives for futuristic and innovative technologies such as Electric Vehicles, Artificial Intelligence, and Green Technology as these will form the backbone of a technology strong India, helping become a $5 trillion economy by 2024," he added.