Under the leadership of the Indian FTA, the tax exemption quota limit on UK electric vehicles is: Official
New Delhi (PTI) India on May 6 (PTI) has quotas for duty-free imports of electric vehicles under a free trade agreement with the UK and has taken care of the industry's sensitivity, an official said on Tuesday.
India and the UK sealed a landmark free trade agreement on Tuesday that would reduce tariffs on India's exports by 99% and make it easier for British companies to export whiskey, cars and other products to India, in addition to strengthening the overall trade basket.
The goal is to double the two-way business by 2030.
Tariffs on imported goods from 100% under both sides' quota will benefit companies such as Tata-Jlr.
The official also said the duty exemption for imports of internal combustion engine vehicles from the UK is also limited to predefined quotas.
“The tax exemption quotas on electric vehicles are limited to a few thousand people. Electric vehicles have not reduced liability. Sensitivity related to electric vehicles has been taken care of,” the official said.
In addition, the non-overpriced tax on internal combustion engine vehicles will gradually decrease over a longer period of time, thus helping Indian industry absorb the gradual increase in imports from the UK.
“As the fourth largest automaker in the world, India has scale and strategic depth to become a global leader in the automotive value chain,” the official said.
Despite India's strong manufacturing base, its share of the globally traded auto market remains soft, highlighting the broad expansion.
The potential of on-duty internal combustion engine vehicles to enter the UK market has the potential to increase the export of automobiles and automotive components in India.
The total retail sales of electric passenger cars in India increased by 56.87% in April this year, compared with 7,798 units a year ago, compared with 7,798 units a year ago, a 56.87% increase, according to the latest data released by the Federation of Auto Dealers Associations (FADA).
Although JSW MG Motor India and Mahindra & Mahindra (M&M) caught up with 3,462 units and 2,979 units, Tata Motors continued to sell with 4,436 electric PVS, and although JSW MG Motor India and Mahindra & Mahindra (M&M) caught up with FADA data, according to FADA's calculations this May 2nd this year.
The official also said that sensitive industrial supplies such as plastics, diamonds, silver, base stations, smartphones, TV cameras, fiber optics, fiber bundles and cables are all under the exclusion list of the agreements, and tariff benefits for those agreements are not provided under the FTA.
Among alcoholic beverages, scotch accounts for only 2.5% of the total whiskey market, the official said.
India's announcement of a tariff reduction is for a longer period of time (10 years) to import Scotch whiskey from the UK, even after that, it will attract a massive 40% customs duty.
“Therefore, the increase in imports of Scotch whisky imports will not significantly affect the domestic market,” the official said. High tariffs on imported alcohol affect the level of foreign direct investment (FDI) in the alcohol industry.
The liberalization of duties will invite UK expertise in spirit/wine, quality control, marketing and consumer awareness.
