New Delhi: lower tax on lithium goods and services
Reaching 18 cents for ion batteries is a popular step, although it is still higher than the factory
The body of the electric vehicle manufacturer SMEV said that installing batteries in electric vehicles would hinder the development of such vehicles in India.
Association of electric vehicle manufacturers (SMEV)
Says the government should eliminate the excess lithium.
Ion batteries attract a higher rate than those originally installed on electric vehicles (EVs)
To reduce the length of time
Term cost of ownership.
\"We are very good. The government has done something to reduce the tax on lithium goods and services.
Ion batteries sold separately.
However, since the new interest rate is still higher than the factory, some stimulus factors remain --
Sohinder Gill, director general of SMEV, told PTI: \"install batteries in electric vehicles . \".
On Saturday, the GST Commission announced a reduction in the prices of some goods. GST on lithium-
The ion battery was reduced from the previous 28 percentage points to 18 percentage points.
\"If we look at it, a lithium --
Ion batteries installed on electric vehicles attract 12 cents of GST, the same as electric vehicles, but will attract 18 cents of GST when sold separately.
\"So there is a difference of 6 cents,\" he added . \".
He said that the difference will still have a significant impact on the promotion of electric vehicles based on the battery exchange model, especially for public transportation.
He added that the difference earlier was a major obstacle to battery replacement and battery rental.
\"Most of the electric buses in India are based on the battery exchange mode.
Therefore, an increase of 6 percentage points in spare batteries may mean an increase of Rs 50,000 in cost . \"
Even for the cab aggregator, the additional cost of the spare battery will be around Rs 15,000, while for the electric scooter owner, this may mean an additional expense of up to Rs 5,000 for the purchase of the new lithium
Ion batteries, he added.
\"While we are grateful to the Treasury for taking corrective measures to some extent, these small stimuli could have been eliminated at one time,\" said Gill . \".
Ideally, GST on lithium
He added that the ion batteries of electric vehicles should remain the same as 12 cents.
Gill says customers have to buy batteries every four to seven years, so higher GST can adversely affect the total cost of ownership of electric vehicles.
However, Ayush Lohia, CEO of Lohia automotive industry, said the government\'s move would power the electric vehicle industry.