We need to reassess taxation on batteries: Tarun Kapoor

New Delhi [India], 19 November (ANI): Tarun Kapoor, Advisor to the Prime Minister's Office, highlighted the need to revisit the taxation structure on batteries while addressing the FICCI Conference on 'Electric Vehicles - Accelerating E-mobility: Enablers and Imperatives'.
Kapoor stated, "As was pointed out, we probably need to look at the taxation on batteries. Additionally, if someone provides charging as a service, GST becomes higher as it is treated as a service. This issue has already been flagged to the concerned authorities, but decisions on GST lie with the GST Council."
He added, "The government does not make direct decisions on this matter. For example, if storage is offered as a service, it attracts higher GST, which probably needs correction. However, this requires the GST Council's approval. From the government's side, we understand that taxation is a significant issue, and we need to ensure that the industry remains viable by addressing these challenges at all levels."
On the broader adoption of electric vehicles (EVs), Kapoor emphasised the goal of achieving at least 30 per cent EV penetration by 2030.
He said, "For two-wheelers, we may need to transition to 100 per cent electric at some stage, and the same applies to three-wheelers. For trucks and buses, we could also aim for 100 per cent electrification soon."
He added, "In light commercial vehicles, especially in cities with high pollution levels, we should consider setting a timeline to halt the deployment of diesel vehicles. This will be worked on by the relevant authorities."
Kapoor also mentioned the government's recent decision to restore subsidies for electric three-wheelers.
"The Ministry has released all subsidies on time, which is a positive step. However, I firmly believe that the shift to electric in three-wheelers must eventually reach 100 per cent, at least in specific cities. Battery swapping is a key enabler for this transition. It's easy to implement, reduces costs, and is particularly feasible within urban areas," Kapoor said.
The remarks underscore the government's focus on overcoming challenges related to taxation and infrastructure to accelerate India's transition to e-mobility. (ANI)