Budget likely to charge up electric vehicle push with tax incentives

The govt is also examining extension of tax holiday for units operating or planning to set up operations in special economic zones

With promotion of clean energy high on government agenda, the upcoming Budget is likely to incentivise manufacturing of electric vehicles (EVs) in the country. 

This is also expected to drive foreign direct investment or FDI into the country.

In line with the government’s road map for EVs in the next four years, the Budget may offer investment-linked incentives to manufacturers with respect to capital expenditure incurred for setting up operations, according to officials in the know.

“With a clear timeline to switch to clean energy vehicles, we are examining tax incentives to encourage players into the EV segment. Besides operations,