Punjab electric vehicle makers demand exemption from VAT

With over half a dozen manufacturers located across the state, Punjab has a potential to become one of the major manufacturing centres for e-rickshaws. However, the state levies 14.30% VAT on e-rickshaw, the highest in the Northern region, which is affecting its sale in the state. The manufacturers in Punjab are catering to Delhi, Bihar, Uttar Pradesh, Andhra Pradesh etc.

 Recently, many states such as Haryana, Karnataka and Delhi have reduced VAT on green vehicles to 5%. The manufacturers have urged the state government to reduce or exempt VAT to encourage the industry as well as the citizens to adopt green mobility.

 According to them, under VAT notifications, all environment-friendly vehicles fall under the zero VAT category but some states continue to levy hefty VAT, thereby making these environment-friendly and electric vehicles way beyond the reach of people. This levy scuttles the government’s proposals to add incentive and bring down the prices of electric vehicles which may still be in its nascent stage but is seeing considerable promise in India.

 “The government should promote e-vehicles as these are environment- friendly, but unfortunately Punjab levies highest VAT in the region on e-rickshaws. We urge the state government to reduce the VAT or exempt it completely as it will boost manufacturing and promote the e-rickshaw manufacturers in the state,” said Sanjeev Kumar, marketing manager, Speedways Electric, Jalandhar. The company manufactures over 2,000 vehicles per annum.

 They also demanded that if the government wanted to increase the penetration of e-rickshaws, it should provide infrastructure support for setting up charging stations at multiple points and convenient locations.

 “The proposed move will not only bring down the air pollution but will also have a positive impact on reducing the high concentration of pollutants,” said a senior executive of Nanya Aircon (P) Ltd., Delhi, which also manufactures e-rickshaws.

(This news story is from The Tribune India)