Budget 2019 has announced an income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electronic vehicles (EVs). The move will motivate buyers to purchase these vehicles and banks to aggressively step into financing them.
The reduction in GST rates on electric vehicles(EV) from 12 percent to 5 percent will also motivate manufacturers of EVs.
(Abhijeet Sinha is National Programme Director – EODB at ASSAR on E -Vehicles. The views expressed are personal)