Tesla is an American company. It is the world’s largest electric car maker. India is promoting the use of electric vehicles
Tesla’s plans to enter India have been thwarted. The government has rejected Tesla’s demand for tax exemption on imports. Tesla chief Elon Musk wants to sell his imported electric cars in India. For this he sought exemption from import tax from the government. The government has rejected their claim, saying India already has a policy for it. Under this policy, auto companies are allowed to import and assemble partially manufactured vehicles in India at a lower import duty.
Vivek Johari, chairman of the Central Board of Indirect Taxes and Customs, said: “We have considered whether there is a need for tariff changes. We have seen some domestic production and some investment in existing tariff structures. So it is clear that duty is not a barrier.” The English business news website Economic Times reported.
The government has invited Elon Musk to start production in India. But Musk first wants to sell his imported cars in India. He wants the government to reduce tariffs on car imports. Imported vehicles attract 100% duty in India. However, import duty on parts for assembling in India is 15-30 percent.
Tesla is an American company. It is the world’s largest electric car maker. India is promoting the use of electric vehicles. In the budget presented earlier this week, Finance Minister Nirmala Sitharaman said the government would introduce a battery-switching policy for e-vehicles. This will encourage the use of e-vehicles.
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