'Govt can help EV sector by giving tax incentives'

Budget 2021 | Govt can give boost to EV sector by giving tax incentives, says Komaki EV Division Director

Gunjan Malhotra. Credit: Komaki.

By Gunjan Malhotra,

After having lived through struggled with the challenges posed by the pandemic throughout the entire last year, the business industry is expecting a reprieve in this New Year.

We consider ourselves rather fortunate that despite the massive devastation caused by the pandemic, the E-vehicle segment has mostly remained shielded from the fallout of the Covid-19 pandemic.

That said, the industry can still benefit from receiving government support. Besides the economic aspect, the government also has an added incentive to invest in the E-vehicle segment as it can contribute towards the betterment of the environment.

Rising air pollution caused by fossil fuels has been the subject of concern for a while, and the E-vehicle segment can be the solution everyone has been looking for.

By offering tax deductions on the interest on loans for EVs, removing the restrictions to avail input tax credit of GST paid on automobiles, and reducing the GST on lithium-ion batteries from 18% to 5%, the government can give a boost to the sector.

(The author is Director, Komaki, Electric Vehicle Division)