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Elon Musk blames high import duties as reason for not bringing Tesla in India

An Indian YouTuber asked on Twitter to launch Tesla cars ASAP in India.

Elon Musk blames high import duties as reason for not bringing Tesla in India

(Photo: AFP)

Elon Musk said that its electric vehicle (EV) company wants to launch cars in India, but its import duties on EVs are “highest in the world by far”, replying to a Twitter query.

An Indian YouTuber asked on Twitter to launch Tesla cars ASAP in India.

“We want to do so, but import duties are the highest in the world by far of any large country! Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India,” Musk said in reply to the tweet.

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Last year, a report said that India had taken a slew of measures to promote electric cars in the country.

The government slashed Goods and Services Tax (GST) on electric vehicles to five per cent from earlier 12 per cent but to protect domestic automakers, it levies 125 per cent duty on imported vehicles.

“I’m told import duties are extremely high (up to 100 per cent), even for electric cars. ” Musk earlier said this would make our cars unaffordable,” Musk earlier said while responding to a tweet from an Indian follower.

Close on the heels of Union Budget providing tax relief for buying electric vehicles, the GST Council, in its meeting last year in July cut the tax on electric vehicles (EV) from 12 per cent to 5 per cent, effective August 1, 2019.

The twin rate cuts are set to boost the EV sector further. The Budget, last year, had proposed an Income Tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase electric vehicles.

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