Govt lowers import duty on components for electric vehicles
To promote domestic assembling of electric vehicles, the government Tuesday lowered customs duty on import of parts and components of such vehicles to 10 to 15 per cent.
Until now, vehicle parts and components imported for assembly in India attracted import duty of 15 to 30 per cent.
The Central Board of Indirect Taxes and Customs (CBIC) has carved out a separate category for parts and components of electric vehicle for which customs duty has been lowered to 10-15 per cent.
Further, the CBIC has removed customs duty exemption to battery packs for electric vehicles and also doubled the duty on battery packs for mobile phones.
Henceforth, import of battery packs for electric vehicles will attract 5 per cent tax. Customs duty on battery packs for mobile phone has been doubled to 20 per cent.
The new rates of duties will come into effect from Wednesday, the CBIC said.
EY Tax Partner Abhishek Jain said, "These customs duty rate rationalisations while may increase the cost of import of these goods, but should definitely boost the 'Make in India' initiative of the government."
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.