Government Evaluating Tesla's Duty Cut Proposal, Decision Expected Soon: Niti Aayog CEO

The government of India will soon take a decision on Tesla's proposal to cut import duties on electric vehicles ahead of its entry into the Indian car market. The EV maker's proposal for duty cut is under evaluation, and a decision will be taken shortly, said Niti Aayog CEO, Amitabh Kant. He said that the final decision will be taken by the Finance Ministry's revenue department. As reported by ETAuto, the Centre is currently discussing a temporary reduction in import duties tentatively for three years, but Tesla has to submit firm business plans for the same.

Also Read: Tesla Asked To Increase Localisation, Share India Plans Before Getting Tax Breaks

The Ministry of Heavy Industries and Ministry of Finance earlier had asked Tesla to increase localisation and share ramp-up plans along with considering local assembly of cars, before seeking any relief from the government.

The final decision will be taken by the Finance Ministry's revenue department, said Niti Aayog CEO

The California-based maker had urged the government to lower import duties on electric vehicles. In its pitch to the government, the EV maker argued that lowering import duties to 40 per cent would make them more affordable and boost sales. In addition, the company also asked the government if the 10 per cent social welfare surcharge could be waived off.

Also Read: Tesla India Officials Meet MoRTH Secretary In Delhi, Take A Test Drive In Model 3

Tesla wants to begin selling imported cars in India this year but says taxes in the country are among the highest in the world. India levies an import duty of 60 per cent on EVs that cost $40,000 or less, and 100% duty on those priced over $40,000. CEO Elon Musk had previously said that Tesla will consider opening a factory in India, if it finds success with imports.

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