The Society For Indian Automobile Manufacturers (SIAM) has welcomed the central government’s move to lower the import duty on CKD and SKD of electric vehicle components.
The notification issued by the government earlier this week stated that the parts and components for electric vehicles imported in the country will be lowered by 10 to 15 per cent.
Previously, the vehicle parts and components imported for assembly in India attracted an import duty of 15 to 30 per cent.
The Central Board of Indirect Taxes and Customs (CBIC) has created a separate category for parts and components for electric vehicles.
The CBIC has also removed customs duty exemption to battery packs for electric vehicles and has doubled the duty on battery packs for mobile phones.
While the import duties were lowered on EV components, the government did not allow to import fully built electric vehicles at a concessional rate, a move that has also been appreciated by SIAM, as a way to promote the Make-in-India initiative.
Fully built EVs will still attract 60 per cent/100 per cent duty for passenger vehicles.
The notification comes before the Union Budget 2019 and removes any ambiguity around the definitions of CKD and SKD for electric vehicles across segments.
The notification states that fully built EVs will still attract 60 per cent/100 per cent duty for passenger vehicles, 50 per cent for two-wheelers and 25 per cent for trucks and buses, as they are for conventional vehicles, as suggested by SIAM.