New Delhi, July 5: Finance Minister Nirmala Sitharaman said on Friday that India can become a global hub of manufacturing electric vehicles and announced a series of sops including likely reduction in GST rate and additional income tax rebate of up to Rs 1.5 lakh.
Presenting the Union Budget, she said the government has moved the Goods and Services Tax Council to reduce the GST rate on electric vehicles from 12 per cent to five per cent. Union Budget 2019 Speech by Nirmala Sitharaman: Increase In Petrol, Diesel Prices, No Change in Income Tax Slabs Among Highlights of India's First Woman Full Time FM's Maiden Budget.
The minister said to make electric vehicles more affordable, additional income tax deduction of Rs 1.5 lakh will be available on instalment for loan taken to purchase these vehicles. Sitharaman said that the deduction will lead to a saving of Rs 2.5 lakh to an individual over the loan period.