SIAM seeks SOPS

Indian Express ( 26 Dec ) carries following news :

 

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In a white paper submitted to the government, SIAM ( Society of Indian Automobile Manufacturers ) has asked the government, in respect of Electric Vehicles Policy  :

·         5 per cent GST on Electric Vehicles

·         One-time income tax deduction amounting to 30 per cent of vehicle price from total taxable income of individual consumers who have not availed of a bank loan to promote usage of electric vehicles.

·         Exemption of Road tax for EVs,

·         Bridging the viability gap

·         Enabling charging infrastructure build-out

·         Encouraging domestic manufacturing besides providing other enablers

·         Power tariff for charging of EVs could be 50 per cent of the existing domestic rate for home

·         Workplace charging to enhance utilisation of EVs.

·         Exemption from paying toll charges

·         All electric vehicles used for commercial purposes be fully exempt from state entry taxes

·         All electric two-wheelers and passenger vehicles used for personal purposes be exempt from parking charges.

·         On interest rate of finance, it sought a favourable treatment similar to priority sector lending for EVs.

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Not having read the original White Paper , I am unable to say whether SIAM overlooked one of my suggestions in respect of Electric Vehicles, as listed in :

 

Auto Industry : Policy  Inputs

https://myblogepage.blogspot.com/2017/12/auto-industry-policy-inputs.html

 

 

But , may be SIAM / Government may want to consider following alternative for incentivizing individual buyers to purchase Electric Cars in their own names :

·         Just as in case of Corporate Buyers , grant “ depreciation “ to individual buyers for owning an Electric Car / Bike / Truck etc

·         This could be 33 % per year ( on straight line method )

·         This could be “ set off “ ( deductible ) against Personal Income Tax payable by the buyer for that year

·         In case where income tax payable is less than the depreciation amount , balance should be allowed to be carried forward to the next year

I have a feeling that such a provision , if introduced by Shri Jaitelyji in his forthcoming budget ( 01 Feb 2018 ) , would give a tremendous boost to the manufacture / sale of Electric Vehicles

There may not be any need to grant any other subsidy / incentive to buyers !

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28  Dec  2017

www.hemenparekh / blogs