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Budget 2023: Government extended tax concessions on EV batteries & more

Finance Minister Nirmala Sitharaman made the announcement when introducing the Union Budget 2023, rendering electric vehicles (EVs) more affordable in India by extending the rebates on their batteries for another year.
Somsubhra ChowdhurySomsubhra Chowdhury1-Feb-23 2:52 PM
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Budget 2023: Government extended tax concessions on EV batteries & more

The electric vehicle (EV) market is a hot commodity in the automotive sector and has the promise to boost the Indian gdp. With the help of the FAME program and public subsidies, the state and federal governments are already attempting to move the business ahead. For a sector that has grown by more than 200% in the past year, there is still much to be accomplished. Here are the demands the EV industry has for the Union Budget 2023.


Finance Minister Nirmala Sitharaman made the announcement when introducing the Union Budget 2023, rendering

electric vehicles

(EVs) more affordable in India by extending the rebates on their batteries for another year. FM Nirmala Sitharaman stated, "I suggest to prolong the tax concessions tariff on lithium-ion cells over evs for an additional year." Nirmala Sitharaman, FM. The government introduced the Production Linked Incentive (PLI) plan for making batteries in May 2021. Government funding for the FAME programme has also been boosted.


The PLI program aims to lower the cost of this essential component for electric cars. Electric car sales now only incur a 5% Goods and Services Tax (GST), down from 12% previously.


The FAME 2 subsidy should be extended from Budget 2023–24 through 2024, according to the electric vehicle sector. FAME 2, or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (II), is a government-sponsored program that encourages the purchase of EVs by offering consumers of

two-wheeler EVs

a subsidy of Rs. 15,000.


Reactions to the Budget


As highlighted by Finance Minister Nirmala Sitharaman in the latest Union Budget 2023, the government's approach to boosting ecological responsibility is a laudable advancement, according to Sameer Aggarwal, CEO and Founder of Revfin Services, an ev funding and online lending marketplace. Added that the focus on green growth projects to lower environmental impact and create jobs demonstrates a profound understanding of how the business and the environment are intertwined. We look forward to helping create a future where everyone lives in economic and environmental prosperity.

"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 concentrates on critically important efforts like cutting the import taxes on lithium-ion batteries from 21% to 13% and extending the subsidy 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 lives, the strategy on replacing outdated, environmentally harmful cars should hasten the switch to electric vehicles. He also added that we are pleased with the budget generally since it is fair, forward-thinking, and will inncrease economy and promote the EV industry.



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