Budget 2023: Electric vehicle prices to reduce thanks to tax cuts on EV batteries
Delhi : Finance Minister Nirmala Sitharaman made the announcement when introducing the Union Budget 2023, making electric vehicles (EVs) more affordable in India by extending the subsidies on their batteries for another year. FM Nirmala Sitharaman stated, "I suggest to prolong the concessional tariff on lithium-ion cells for batteries for another year." Nirmala Sitharaman, FM. The government introduced the Production Linked Incentive (PLI) scheme for making batteries in May 2021. Government funding for the FAME programme has also been doubled.
The PLI programme aimed to lower the cost of this essential component for electric vehicles. Electric vehicle sales now only incur a 5% Goods and Services Tax (GST), down from 12% previously.
2023 budget: Reactions
The recent Union Budget 2023, which was highlighted by Finance Minister Nirmala Sitharaman, highlighted the government's commitment to promoting environmental sustainability. This is a commendable development, according to Sameer Aggarwal, CEO and Founder of Revfin Services, an electric vehicle financing and digital lending platform. He added, "Green growth projects that place a strong emphasis on lowering carbon emissions and creating jobs show a clear understanding of how interdependent the economy and environment are. We look forward to doing our part to ensure that everyone has a more successful and eco-friendly future."
"We appreciate the budget for naming Green Growth one of the top 7 goals," stated Kalyan C. Korimerla, MD and Co-Promoter of Etrio Automobiles. The Pro-EV budget focuses on critically important efforts like cutting the customs duty on lithium batteries from 21% to 13% and extending the subsidies for EV batteries by another year. These are encouraging measures since they will increase demand. In accordance with the budget's goal of promoting eco-aware lifestyles, the policy on replacing old, polluting vehicles should hasten the switch to electric vehicles. We are pleased with the budget overall since it is inclusive, forward-thinking, and will promote investments in the EV sector.
