Budget 2019: Electric Vehicles To Get More Affordable

The NDA 2.0 government made some major announcements for pushing electric mobility in India as part of the Union Budget 2019. While the Indian auto sector did not witness any dramatic changes in tax norms, Finance Minister Nirmala Sitharaman recommended reducing the GST rate on electric vehicles from the current 12 per cent to five per cent in a bid to push the sale of EVs in the country. In addition, there will be an income tax deduction of ₹ 1.5 lakh on the interest paid on the loans taken to purchase electric vehicles. The push for EV purchase is expected to boost sales for the alternate fuelled vehicles, which has been a major agenda for the government since the previous term.