The Union Budget to 2019 was presented by the Finance Minister Dr. Nirmala Sitharaman on 5th July 2019. She broke the tradition this year of carrying the budget wrapped up in a red cloth tied up by a string instead of the traditional suitcase. The red cloth also had our national emblem embodied on it.
The main key highlights of this year’s budget with respect to Electric vehicles and solar sector are:
- With the FAME || scheme the government is trying to encourage the faster adoption of the electric vehicles by offering the right incentives for its manufacturing and charging infrastructure.
- The government also reduced the GST rate from 12% to 5% on electric vehicles and also there is a decrease in income tax of 2.5 Lakh on the interest paid on loans on the buying of EVs.
- To boost up the purchase of EVs, additional IT deduction on 1.5 Lakh on interest paid on loan for buying of EVs.
- “Stand up India” programme to be continued till the year 2025.
- Pension benefit shall be expanded to retail traders with a annual turnover of less than Rs1.5 crore.
- The government will enable an E- verification system for establishing investor’s identity and the source of funds for the start-ups.
- It is proposed to ease up the Angel tax for the start-ups in this sector.
- The union budget also sorts to reductions in 35D in solar storage batteries and chargers.
- The government will also initiate a programme of distribution of mass scaling of LED bulbs which is approximately around 35 crore.
- With an intention to incentive’s e-mobility, customs duty is being exempted on certain parts of electric vehicles.