The Union Finance Minister in her maiden budget has announced the reduction of Goods and Service Tax (GST) on electric vehicles from 12% to 5%.
She said that the government has already moved GST council to lower the GST rate on electric vehicles (EV) from 12% to 5%. Also to make EVs affordable for consumers, the government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs.
Finance Minister Nirmala Sitharaman said the government has already approved Rs 10,000 crore for FAME II scheme on April 1, 2019 to encourage faster adoption of electric vehicles by providing right incentives and charging infrastructure. FM also said there will be a comprehensive restructuring of National Highways Program to ensure the creation of National Highways Grid of desirable capacity.
She said that India celebrated its democracy, referring to the mandate given to this government. The first term of the Narendra Modi government stood out as a performing government, she says.
The principles — reform, perform and transform — can work, says the Finance Minister. Between 2014 and 2019, we provided rejuvenated Centre-State dynamic, cooperative federalism, and the GST Council, she says.
Average amount spent on food security approximately doubled in 2014-19, number of patents tripled in 2017-18. “Mazboot desh ke liye mazboot nagrik.”
“Our economy was at approx $1.85 trillion in 2014, within 5 years, it has reached $2.7 trillion.” She says it is well within the government’s capacity to reach the $5-trillion-economy target.
“Indian economy will become $3 trillion economy in this year itself. It is now 5th largest in the world and in purchasing power parity terms, it is the third largest, behind only U.S. and China.”
“It took us over 55 years for the Indian economy to reach $1 trillion. But when people’s hearts are filled with hope, trust, and desire, in just five years we could make it $3 trillion.”
“All of India’s private sector industries have played a substantial role in India’s growth. If before independence, India Inc understood swadeshi, today they understand Make In India.”
(With inputs from an English Daily)