5% GST benefit should only be for smaller EVs; don't extend it to bigger cars
Skoda Volkswagen India has suggested that only the smaller electric vehicles that are less than four metres long should get the 5% GST benefit, ToI reported on April 9 quoting an official from the company.
If the said benefit is extended to all EVs -- including bigger and expensive ones -- it will put the exchequer and govt finances under pressure, the report quoted Petr Janeba, the brand director for Skoda in India, as saying.
Subsidies for smaller vehicles can help quicken EV uptake in India, Janeba told the newspaper.
It may be noted here that Skoda Volkswagen India has invested Rs 8,000 crore in India and is preparing for next round of expansion in the country.
"Why do you need to support people who buy a car for Rs 60 lakh. Current GST regime is supporting much more wealthy people in terms of GST reduction. Where is the logic?" Janeba asked.
Asked whether 5% rate should be reserved only for cars that are targeted at the masses, he said, "Look around the world, in Europe, US, and China. They have all done it. The biggest subsidy is for mass segment. This way you accelerate EV growth much faster."
