- GST on electric vehicles reduced from 12 per cent to 5 per cent
- Tax benefits of up to Rs 1.5 lakhs on Electric Vehicle loan
The Union Budget 2019 has brought some relief to car manufacturers in the country with the announcement on the reduction in GST on electric vehicles from 12 per cent to five per cent, by the Finance Minister, Nirmala Sitharaman. Additionally, to encourage consumers, the government has provided an additional income tax deduction of Rs 1.5 lakhs on the interest paid towards loans taken to purchase electric vehicles.
The Finance Minister has also stated that there will be a comprehensive restructuring of National Highways Programme to ensure the creation of National Highways Grid of desirable capacity. On 1 April, 2019, the government had approved Rs 10,000 crore for FAME II scheme to encourage faster adoption of electric vehicles by providing right incentives and charging infrastructure.