Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday 27 December 2017

SIAM seeks SOPS



Indian Express ( 26 Dec ) carries following news :

 

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In a white paper submitted to the government, SIAM ( Society of Indian Automobile Manufacturers ) has asked the government, in respect of Electric Vehicles Policy  :

·         5 per cent GST on Electric Vehicles


·         One-time income tax deduction amounting to 30 per cent of vehicle price from total taxable income of individual consumers who have not availed of a bank loan to promote usage of electric vehicles.

·         Exemption of Road tax for EVs,

·         Bridging the viability gap


·         Enabling charging infrastructure build-out

·         Encouraging domestic manufacturing besides providing other enablers

·         Power tariff for charging of EVs could be 50 per cent of the existing domestic rate for home


·         Workplace charging to enhance utilisation of EVs.

·         Exemption from paying toll charges


·         All electric vehicles used for commercial purposes be fully exempt from state entry taxes

·         All electric two-wheelers and passenger vehicles used for personal purposes be exempt from parking charges.


·         On interest rate of finance, it sought a favourable treatment similar to priority sector lending for EVs.

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Not having read the original White Paper , I am unable to say whether SIAM overlooked one of my suggestions in respect of Electric Vehicles, as listed in :

 

Auto Industry : Policy  Inputs


https://myblogepage.blogspot.com/2017/12/auto-industry-policy-inputs.html

 

 

But , may be SIAM / Government may want to consider following alternative for incentivizing individual buyers to purchase Electric Cars in their own names :




·         Just as in case of Corporate Buyers , grant “ depreciation “ to individual buyers for owning an Electric Car / Bike / Truck etc


·         This could be 33 % per year ( on straight line method )


·         This could be “ set off “ ( deductible ) against Personal Income Tax payable by the buyer for that year


·         In case where income tax payable is less than the depreciation amount , balance should be allowed to be carried forward to the next year





I have a feeling that such a provision , if introduced by Shri Jaitelyji in his forthcoming budget ( 01 Feb 2018 ) , would give a tremendous boost to the manufacture / sale of Electric Vehicles


There may not be any need to grant any other subsidy / incentive to buyers !


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28  Dec  2017

www.hemenparekh / blogs 

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