UNION BUDGET 2018: HIGH TAX (GST) ON THE EV COMPONENTS STILL REMAINS A BIG CONCERN FOR THE INDUSTRY, AMPERE ELECTRIC VEHICLE PVT. LTD.
The Union Budget, presented yesterday by Arun Jaitley, the Finance Minister didn’t seem to touch the automotive sector directly at all. But we you shall see soon, it did. The auto sector happens to be too large to be unaffected by changes elsewhere. To wit, the drop is corporate tax should make medium and small industries more profitable. Here is a reaction from Ampere Electric Vehicle Pvt. Ltd.
Hemalatha Annamalai, south chapter chief, SMEV and CEO & founder Ampere Electric Vehicle Pvt Ltd.
” I am sure that simplifications in indirect taxes will ease compliance requirements for the MSMEs and also, electric vehicle companies in India. The budget intends active measures for promotion of rural infrastructure and agricultural for the country and thus, increasing income of rural people. And then, the renewed thrust to MSMEs to the tune of Rs 3,794 crore in the form of capital support and interest subsidy by 2022, will surely help meet the credit demands of many companies. Considering India’s Electric Mission 2030, continued govt initiatives for both rural and MSME empowerment, will help achieve mass percolation vis a vis EVs in the country.
“High tax (GST) on the EV components still remains a big concern for the industry, which this budget must revise to 5 per cent for all the EVs components. The CGT-MSE limit which is now INR 2 crores for MSME industries should have been revised to INR 5 crores. The emerging business verticals such as electric vehicles, solar, wind, renewable energies like hydrogen, ethanol etc have longer gestation unlike conventional companies, and hence, an enhanced working capital support through CGT- MSE is a must. This will support increased production volumes for scale and also bridge the GST refund timeliness”, added Hemalatha.