- Tax Rebate of Rs. 1.5 Lakh on interest paid for loan taken by EV Buyer
- Total Benefits worth Rs. 2.5 lakhs
- GST rate to reduce to 5% from 12% on EV
- Rs. 10,000 crore allocated to FAME-II for faster adoption of EV
Budget 2019 announced by the government today has bought benefits to electric vehicle buyers. This includes tax benefits to electric vehicle buyers. As per the budget presented by Finance Minister of India, Nirmala Sitharaman, the EV buyers will get additional tax benefits on the interest paid for the loan amount of the vehicle worth Rs. 1.5 lakhs. With the final on-road price, the buyer will enjoy the total benefits of Rs. 2.5 lakhs.
To encourage the manufacturing of electric vehicles, a sum of Rs.10,000 crore is allocated for FAME-II by the govt for easier and faster adoption of EVs. Not just this, the government has been in talks with the GST council to reduce the GST excise rate to 5% from the current 12% on electric vehicles.
Talking about the critics, people have put different opinions on this, but the prime talking remained the same. Though the government is trying really hard to bring electric vehicles under the range of common man, they carry a premium pricing over their mechanical counterpart. Budget 2019 will bring more opportunities for electric vehicle manufacturers while helping the environment at the same time.