The Centre has been taking initiatives to popularise environment-friendly electric vehicles:
- Last week, the GST Council decided to cut the tax rates on e-vehicles from 12 per cent to 5 per cent with effect from August 1.
- In the Union Budget 2019-20, the government proposed additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles. Besides, certain parts of EVs have been exempted from customs duty to further incentivise e-mobility in the country.
- The Centre has also approved Rs 10,000 crore under the FAME II scheme, which aims to encourage faster adoption of such vehicles by right incentives and charging infrastructure.
- Niti Aayog has proposed that two-wheelers below the capacity of 150cc sold in the country after March 31, 2025, should be electric ones only. It also proposed that three-wheelers sold in the country after March 31, 2023 should be electric ones.
