Two days ahead of presentation of interim Budget, the government lowered import duty on parts of electric vehicles. The duty changes, effective January 30, have been done with the intent to promote domestic assembling of electric vehicles. The Centre lowered customs duty on import of parts and components of such vehicles to 10-15 per cent. So far, vehicle parts and components imported for assembly in India attract import duty of 15-30 per cent.
The Central Board of Indirect Taxes and Customs (CBIC) has carved out a separate category for parts and components of electric vehicle for which customs duty has been lowered to 10-15 per cent. The CBIC said changes have been made in “public interest”.
Further, the CBIC has removed customs duty exemption to battery packs for electric vehicles and also doubled the duty on battery packs for mobile phones. Batteries for electrically operated vehicles, including two and three wheeled electric motor vehicles will now be charged 5 per cent import duty from nil earlier. Customs duty on battery packs for mobile phone has been doubled to 20 per cent.
Inputs or raw material used in manufacture of battery pack of cellular mobile phones are no more exempt, CBIC said. Import duty on lithium ion cell for use in manufacture of battery pack of cellular mobile phone and power bank of lithium ion will be 5 per cent.
Inputs or raw material other than lithium ion cell and Printed Circuit Board Assembly used in manufacture of Battery pack of cellular mobile phones are currently exempt while lithium-ion battery of cellular mobile phones is currently charged at 15 per cent.
Duty on Voice over Internet Protocol (VoIP) equipment, namely, VoIP phones, media gateways, gateway controllers and session border controllers, packet transport node products will now be 10 per cent, notifications said.
Import of electrically operated vehicles as knocked down kit with disassembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake system, Electric Compressor not mounted on chassis will attract 10 per cent, the same as earlier, while those with pre-assembled battery pack, motor, motor controller, charger, power control unit, energy monitor contractor, brake system, electric compressor not mounted on a chassis or a body assembly will attract 15 per cent duty as against 10 per cent earlier.
Electrically operated motor cars and other motor vehicles will attract 100 per cent duty if the cost, insurance and freight is over $40,000 and 60 per cent duty for value lower than $40,000.