Heavy industries ministry has proposed customs duty cut on EV parts to FinMin, says Union Minister Anant Geete

By: |
December 21, 2018 2:43 PM

Union Minister Anant Geete said Friday the Department of Heavy Industries has proposed slashing of customs duty on parts of electric vehicles (EVs) to the finance ministry, which has to take a call on it.

Heavy industries ministry has proposed customs duty cut on EV parts to FinMin, says Union Minister Anant Geete (PTI)

Union Minister Anant Geete said Friday the Department of Heavy Industries has proposed slashing of customs duty on parts of electric vehicles (EVs) to the finance ministry, which has to take a call on it. “We have requested (reduction of import tariff) to the finance ministry. The finance ministry has to decide on it,” Geete said at the launch of e-rickshaw, e-scooter and e-cycle manufactured by Nibe Motors here.

The e-scooter and e-cycle made by the Nashik-based start-up Nibe Motors have been certified by the Automotive Research Association of India, which comes under the administrative control of the Union heavy industries ministry.

Senior officials in the heavy industries ministry earlier said it has proposed reducing customs duty on EV parts, which are currently not exempt from import tariff to the Department of Revenue.

Read Also| Nissan’s Carlos Ghosn re-arrested over fresh allegations

To boost production of EVs in the country, the ministry has also suggested defining semi-knocked-down and completely-knocked-down kits used for assembling such vehicles for streamlining of customs duty. Currently, key components for EVs, including battery, controller, charger, converter, energy monitor, electric compressor and motor attract zero customs duty. On the other hand, parts including metals and plastics attract 28 per cent basic customs duty.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Estimates show ‘upside potential’ for economy this financial year: Chief Economic Adviser K V Subramanian
2Fiscal deficit at 120 per cent of annual target at October-end
3Forex reserves climb $2.518 billion to record $575.29 billion