GST Council Hikes Tax on Used EVs Sold by Businesses; Opposition Slams Decision

Posted by Admin on 2024-12-22 06:02:08 |

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 12

GST Council Hikes Tax on Used, Old EV Cars by Businesses; Opposition Reacts

The GST Council has announced a significant hike in the Goods and Services Tax (GST) on used and old electric vehicles (EVs) sold by businesses, sparking a strong reaction from the opposition. The new tax rate, effective immediately, raises the GST on these vehicles from 5% to 18%, a move that has drawn mixed reactions from various stakeholders.

The decision, which was made during a meeting of the Council, aims to streamline tax regulations surrounding the EV market. However, it has left many businesses, especially those dealing in second-hand electric vehicles, concerned about the increased financial burden. Experts warn that the hike could affect the growth of the used EV market, potentially discouraging customers from purchasing pre-owned electric vehicles.

The opposition, including several regional parties, has sharply criticized the move. They argue that the increased tax rate will undermine the government push for greener transportation and hinder efforts to make EVs more affordable for the masses.

Government officials have defended the decision, citing the need for consistency in taxation policies. Meanwhile, industry experts are closely monitoring the impact of this move on both the EV market and consumer behavior.