In a relief to Indian consumers, the Goods and Services Tax (GST) Council announced on Saturday had slashed tax rates of electric vehicles and chargers, which will be applicable from August 1.
Here are some more things which will get cheaper from Thursday:
As per the Council's statement, after its 36th meeting, the tax rate on electric vehicles has been reduced from 12% to 5%, while on electric chargers the tax rate has been reduced from 18% to 5%. Furthermore, the Council has announced that hiring of electric buses with a carrying capacity of more than 12 by local authorities will be made tax free. Electric charging stations too are covered in the 5% tax slab, as stated by the Council. This will make many electric car aspirants to finally go ahead and buy the eco-friendly vehicle.
This move has been in line with Finance Minister Nirmala Sitharaman's declaration during her maiden Budget speech. This reduction is aimed to meet India's carbon emission goal of reducing the emissions intensity of the country's gross domestic product (GDP) by 33-35% by 2030 while increasing the number of renewable energy sources to meet 40% of the country's electric power demand.
In the Union Budget 2019-20, the government provided additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase EVs. Besides, customs duty has been exempted on certain parts of EVs to further incentivise e-mobility in the country.
After the release of RBI's monetary policy on July 12, announcing the removal of additional transaction charges on National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement System(RTGS), SBI has decided to do away with charges levied on IMPS, NEFT, and RTGS. Thus people who do most transactions online using various payment apps can finally heave a sigh of relief.
The move has been done by the apex financial body in a bid to push digital transactions as shared by the Finance minister, in her Budget Speech. Apart from net transactions, SBI has also cut interest rates on bulk and retail term deposits on Monday to lower credit on borrowing.
(With PTI Inputs)