Industry hails waiving of import duties on critical minerals, calls for reduced GST on EVs
The Electric Vehicle industry has welcomed Finance Minister Nirmala Sitharaman's announcement in the Union Budget to waive import duties on critical minerals. However, many industry leaders emphasized the need to reduce GST on electric vehicles as well.
Dr. Amitabh Saran, CEO & Founder of Altigreen, commented, "The 2024 Union Budget has announced incentives for the battery manufacturing industry by waiving import duties on 25 minerals, including lithium. This will help reduce battery costs, making electric vehicles more economical for customers. The budget’s focus on job creation in the manufacturing sector is likely to benefit 30 lakh youth, boosting disposable income and particularly aiding the two-wheeler segment. Investment in highways and rooftop solar will also push the larger agenda of EVs." He added,
"We were expecting the government to bring down GST on all EV components to 5%, including lithium-ion batteries and spare parts. A reduction would make EVs more affordable and lead to higher adoption rates."
