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Budget 2019: Makers of EVs welcome GST cut

Budget 2019: Makers of EVs welcome GST cut

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In 2018, the state government had signed a memorandum with Energy Efficiency Services Limited (EESL) to procure 1,000 EVs in the first phase.

Mumbai: The Union Budget 2019 includes reducing the Goods and Service Tax (GST) on electric vehicles from twelve to five per cent. While Maharashtra government is trying to procure electric vehicles (EV) to reduce air pollution in the state, stakeholders have stated that it will help them ease business of EVs while promoting the use of cleaner fuel in Mumbai as well.

While addressing the Union Budget for the year, Union finance minister Nirmala Sitharaman stated that an additional income tax deduction of Rs 1.5 lakh would be provided on the interest paid on the loans taken to buy EVs. Maharashtra had proposed a draft EV policy, 2018, which aims to increase the registered EVs in the state up to five lakh.

In 2018, the state government had signed a memorandum with Energy Efficiency Services Limited (EESL) to procure 1,000 EVs in the first phase. “The proposed reduction in Goods and Service Tax is a good move for both companies and consumers. It will help in reducing the overall price and make it cheaper for the public. Once it is approved it can be used for private as well as public vehicles,” said Saurabh Kumar, managing director, EESL.

According to Society of Manufacturers of Electric Vehicles (SMEV), Maharashtra has recorded sales of around 4,865 EV units. “The move will help curb pollution and encourage people to use public transport which are based on electric vehicles. It will also help the service providers as the procurement of these vehicles will be relatively cheaper,” said an official from Brihanmumbai Electricity Supply and Transport (BEST).

The Union Budget for ministry of environment forest and climate change (MoEFCC) for 2019 has been increased to Rs 2,954.71 crore, a ten percent increase since last year. While the allocation in the budget for renewable energy and National Mission for Green India has increased, there have not been any additions in the budget of climate change and wildlife projects like Project Tiger and Project Elephant.

The National Coastal Mission budget has reduced significantly to Rs 95 crore against Rs 130 crore last year.

Source: asianage

Anand Gupta Editor - EQ Int'l Media Network

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