Government Mulling Import Duty Cut On Electric Cars

Government is considering slashing import duties on electric cars to as low as 40 per cent, two senior government officials told Reuters.

Government is considering slashing import duties on electric cars to as low as 40 per cent, two senior government officials told Reuters, days after Tesla Inc's appeals for a cut polarised the country's auto industry. For imported electric vehicles (EVs) with a value of less than $40,000 - including the car's cost, insurance and freight - the government is discussing slashing the tax rate to 40 per cent from 60 per cent presently, the officials told Reuters. For EVs valued at more than $40,000, it is looking at cutting the rate to 60 per cent from 100 per cent, they said. "We haven't firmed up the reduction in duties yet, but there are discussions that are ongoing," one of the officials said.