No proposal to cut import duty on electric vehicles, says Sitharaman

New Delhi, Aug 25

Finance Minister Nirmala Sitharaman on Friday said that there was no proposal before the government to cut import duty on electric vehicles.

She said this in response to queries on whether the finance ministry was planning to cut import duty on electric vehicles, amid reports that such a move was on the anvil and it may facilitate entry of Tesla vehicles in the country.

"There is no such proposal before me to lower import duty on electric vehicles," Sitharaman was quoted as saying while speaking to reporters on the sidelines of the B20 summit.

A section of the media had reported earlier today that such a move was on the anvil, and it would allow automakers to import fully-built electric vehicles into India at a reduced tax of 15 per cent, compared to the existing 100 per cent tax, which is applicable on cars which are priced more than $40,000. It is 70 per cent for the rest.