he EV sector is the hot property in the automobile industry and it also has the potential to give the Indian economy a good push ahead. State and Central governments are already trying to nudge the industry forward using FAME scheme and state-level subsidies. However, there’s much more to be done for an industry that has recorded over 200% growth in the last year. Here’s what the EV sector is demanding from the Union Budget 2023.
Maxson Lewis, Founder and Managing Director, Magenta Mobility: “We expect the budget to extend the Corporate Tax Benefits for Infrastructure companies and reduce the GST from 18% to 12% for the Logistics sector. This GST reduction will go a long way in managing the inverted GST impact ailing the EV logistics sector.
Another key aspect is making finance easy for EVs. This can be done by loan mandate to Govt sector banks and financial institutions. The government can see this as a kick start to a sustainable economy while driving demand for the automotive industry.”
Pratik Kamdar, Co-Founder Neuron Energy: “In recent years, electric vehicles (EVs) have become increasingly popular in India owing to growing eco-consciousness, efforts to reduce dependence on fossil fuels, and rising fuel costs. The Union budget 2023 is expected to be a turning point for the sector. The EV industry is expecting a GST cut from 18% to 5% on lithium-ion battery packs and cells. The Indian electric vehicle (EV) sector, which mainly relies on batteries, would benefit if this transformation were to occur.”
