Tuesday, Oct 16, 2018 | Last Update : 07:58 AM IST

Govt to increase tax on petrol, diesel cars to promote electric vehicles

THE ASIAN AGE
Published : Jul 12, 2018, 1:24 pm IST
Updated : Jul 12, 2018, 1:22 pm IST

An increase in taxes on petrol and diesel vehicles will boost the promotion of electric vehicles.

Government has planned to increase the taxes on petrol and diesel cars to release the financial burden on it for incentivising electric vehicle buyers.
 Government has planned to increase the taxes on petrol and diesel cars to release the financial burden on it for incentivising electric vehicle buyers.

Mumbai: Senior government officials had denied using electric cars recently on the basis of poor performance and low mileage, but the government is willing to launch electric vehicles in full swing for the consumers.

Government has planned to increase the taxes on petrol and diesel cars to release the financial burden on it for incentivising electric vehicle buyers under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, as per report.

An increase in taxes on petrol and diesel vehicles would impact the sales in Indian market, the move will give a boost to the promotion of electric vehicles, as told by the finance ministry to the executive finance committee. The government has implemented the phase two of the FAME scheme, as per the report from Mint.

The government has delayed phase two of FAME scheme three times already and the new scheme is scheduled to be implemented before September this year. Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme was implemented in 2015, for faster manufacturing and development of electric vehicles and to make India electric ready.

Indian infrastructure is not electric ready currently, there is a lack of infrastructure for charging the vehicles. The infrastructure demands higher investment, and for the implementation of FAME scheme the department of heavy industries demands upto Rs 9,381 crore till 2022-23. The government has already infused Rs 1,000 crore in FAME scheme.

(With Inputs from Agencies)

Tags: electric vehicles, fame scheme, infrastructure, finance ministry
Location: India, Maharashtra, Mumbai (Bombay)