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Union Budget 2019: Boost to Electric Vehicles

Govt will provide additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs.

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The Auto Industry had many expectations from this union budget. The main focus of the sector was electric vehicles. The Government has already moved GST council to lower the GST rate on electric vehicles(EV) from 12% to 5%, which will be beneficial for both the EV maker and buyer. The Government announced an Outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME Scheme in this budget. Also to make EVs affordable for consumers our Govt will provide additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs.

During her speech, Nirmala Sitharaman - Finance Minister of India, Said, "To make EVs affordable for consumers our Govt will provide additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs."

The Government also announces the upfront incentive proposed on purchase and charging infrastructure, to encourage faster adoption of Electric Vehicles. Only advanced-battery-operated and registered e-vehicles to be incentivized under FAME Scheme. The Customs duty also exempted on certain parts of electric vehicles. 

Now you need to pay more at fuel stations as Finance Minister Nirmala Sitharaman has proposed to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a liter on petrol and diesel.



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