New electric vehicle scheme links lower import duty with FDI

The government has notified the scheme to promote manufacturing of electrically operated passenger vehicles (EVs) in India and issued two notifications 19/2024Customs and 20/2024Customs both dated March 15, 2024, exempting the social welfare surcharge and reducing the basic customs duty (BCD) to 15 per cent on imports of EVs falling under the heading 8703 of the Customs Tariff subject to certain conditions.

- TNC RAJAGOPALAN

The government hopes the scheme will attract foreign direct investment in the manufacture of EVs.