Reporting by Aditi Shah; Editing by Elaine Hardcastle
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NEW DELHI, Jan 19 (Reuters) – Indias western Maharashtra state on Wednesday urged the federal government to lower tax rates on imported vehicles in the budget on Feb. 1, following calls by electric carmakers like Tesla (TSLA.O).
Maharashtra is a leading vehicle production hub for domestic carmakers like Tata Motors (TAMO.NS) and Mahindra & & Mahindra (MAHM.NS), both of which are investing in making electrical automobiles in your area and have actually opposed Teslas pressure to reduce taxes.
The states environment minister in his letter to Prime Minister Narendra Modis finance minister, Nirmala Sitharaman, stated lowering taxes for a restricted amount of time would enhance Indias supply chain environment and manufacturing procedure for electrical cars (EVs).
The Tesla logo design is seen on a car at Tesla Motors new display room in Manhattans Meatpacking District in New York City, U.S., December 14, 2017. REUTERS/Brendan McDermid
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” Pioneering companies like Tesla, Rivian, Audi, BMW among many others need to be offered a time-bound concessionary custom-mades rate for the import of vehicles,” Aaditya Uddhav Thackeray said in the letter, released by him on Twitter.
Thackeray, also advised in his letter lowering the tax rate for a maximum period of 3 years or for a specified number of vehicles for any company that wishes to import EVs or car components to develop such vehicles in India.
Presently, India levies import duties as high as 100% on high-end automobiles, including EVs, in a quote to protect and promote the local market. Tesla, which wants to begin selling cars in India, is lobbying to minimize the rate to 40%.
Maharashtras plea to Modis government follows a tweet by Tesla CEO Elon Musk recently in which he said the business was “still overcoming a lot of obstacles with the government” ahead of a possible launch in India.