The Haryana State, in the wake of promoting electric vehicles, has declared numerous tax benefits to the buyers and manufacturers of EVs.
Haryana Cabinet which met under the Chairmanship of Chief Minister, Sh. Manohar Lal on Friday accorded approval to the Haryana Electric Vehicle (EV) Policy 2022. The year 2022 will be declared as “Year of the Electric Vehicles” in Haryana.
The EV Policy aims to protect the environment, reduce carbon footprint, make Haryana an EV manufacturing hub, ensure skill development in EV field, encourage uptake of EV vehicles, provide EV charging infrastructure and encourage R&D in EV technology.
The policy encourages new manufacturing in EV technology and also encourages existing automobile manufacturers to diversify in EV manufacturing domain. The policy offers various financial incentives to EV manufacturers by giving incentives on Fixed Capital Investment (FCI), Net SGST, Stamp Duty, Employment Generation, etc.There is100% reimbursement of Stamp duty along with exemption in Electricity Duty for a period of 20 years. The SGST reimbursement shall be 50% of the applicable Net SGST for a period of 10 years. Companies manufacturing electric vehicles, components of electric vehicle, EV battery, charging infrastructure etc. shall be incentivized with capital subsidy.
Mega industry shall get capital subsidy at 20% of FCI or INR 20 Crore whichever is lower; large industry will get subsidy of 10% of FCI upto INR 10 crores, for Medium Industry 20% of FCI up to INR 50 lakh, for Small Industry 20% of FCI upto INR 40 lakh and for Micro Industry 25% of FCI up to INR 15 lakh. Under this policy units setting up batteries disposal units will get 15% of FCI up to INR 1.00 crore. The policy provides one time support to facilitate conversion of existing manufacturers units completely into EV manufacturing of 25% of book value up to INR 2 Crore for Micro, Small, Medium and Large units.
The cost of an electric vehicle is comparatively higher than conventional-fuel-based vehicles which is a major deterrent to buyers in switching to EV. The policy offers incentives to buyers that would reduce the effective upfront cost and motivate individuals to take upelectric vehicles as their primary mode for transportation. The policy will provide early-bird direct benefit transfer upto INR 10 lakh on the purchase of Electric Vehicles or Hybrid electric Vehicles in the state. Buyers will also be eligible for relaxation in registration fee and discount on Motor Vehicle Tax.
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