New Delhi: The world's richest man Elon Musk's company 'Tesla' had demanded tax concession from the Indian government, but it has been turned down again. The Government of India has bluntly said that companies are already being given concessions for bringing half-built vehicles to India and finalizing (assembling). However, Tesla is asking for additional tax exemptions. The government led by PM Narendra Modi wants Tesla to manufacture its cars in India itself. However, Elon Musk's company is continuously demanding exemption in import duty, which is up to 100 per cent on electric vehicles.
Vivek Johri, head of the Central Board of Indirect Taxes and Customs (CBIC), said, "We considered that the duty should be reduced, but in India, some construction work is taking place at the domestic level and along with the current tax rates, there have been some investments from outside. He made it clear that the Government is not obstructing it. However, Tesla wants to bring the vehicles made in foreign countries to India first and sell them at a price that it can compete with its rivals. But, for making in the country, only 15-30 per cent of the parts of the trains which are brought from outside are charged import duty. Tesla has no plans for domestic production and procurement in India. There is no provision for this in the latest budget, but the Uddhav Thackeray government in Maharashtra has publicly supported Tesla's demands.
Following Elon Musk's statement on the ongoing problems with the Indian government, the governments of at least five states ruled by opposition parties in India have invited Tesla to do business here. In fact, the Indian government has advised Tesla to carry out construction work locally as soon as Tata and Mahindra. However, fully made cars are also coming to India. Tesla is also being challenged by Mercedes. Hyundai and Suzuki's vehicles running on petrol and diesel still have an impact in India and only 1 per cent of the electric cars are used.
Since 2019, Tesla has been trying to come to India, but for this, the company has been calling the rules and regulations here as an obstacle. Indian government officials say that if some companies may come upon the existing tariff structure, then what is the problem with Tesla? Tesla is also lobbying in India for tax cuts. Electric vehicles up to $40,000 (Rs 29.88 lakh) in India are taxed at 60 per cent and above at 100 per cent. Apart from Tesla, there are many other companies that make electric vehicles.
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