(FE)
The GST Council today will consider the proposal to cut tax rate on electric vehicles (EVs) to 5% from 12% currently, a move that will align with the government’s push to make non-fossil fuel transport lucrative to buyers. The Council, chaired by finance minister Nirmala Sitharaman, would meet for the 36th time via video-conferencing. The proposal to slash rates on EVs was referred to a committee of officials called ‘fitment committee’ for preparing recommendation. Apart from EVs, the fitment committee is likely to recommend concessional rates on electric chargers and hiring of EVs.
A government official said that since EVs are not sold in any significant volume, the rate cut and its impact on revenue wouldn’t be a concern for the GST Council. Vehicles running on petrol and diesel cars, and hybrid vehicles are already taxed at the highest rate of 28% along with an additional cess that varies from 1% to 15%, depending on the make of the car.
