Home Business India’s Finance Ministry Declines Duty Waivers for Tesla, While Investment Talks Persist: A Comprehensive Update

India’s Finance Ministry Declines Duty Waivers for Tesla, While Investment Talks Persist: A Comprehensive Update

by khushahal vishwakarma

Revenue Secretary Sanjay Malhotra said that the Revenue Department is not actively considering any tax exemption for Tesla yet.

Tesla’s Tax Relief Request Denied

According to Revenue Secretary Sanjay Malhotra, the Ministry of Finance in India has confirmed that they are not currently considering any tax relief for Tesla. In light of recent assertions made by Elon Musk, the CEO of Tesla, alleging that Indian Prime Minister Narendra Modi personally implored the company to allocate substantial financial resources within the nation, this sentence emerges as a wholly unique response to those claims.
During a recent interview with Reuters, Malhotra unequivocally stated that there are no current deliberations within the Revenue Department regarding the provision of any tax exemptions specifically for Tesla.

In the past, the possibility of a customs duty waiver for the import of Tesla’s electric vehicles was included in discussions between Tesla and the Indian government, a request that was previously dismissed by India.

tesla

In contrast, despite Tesla’s appeals, the Revenue Department has firmly asserted that they currently have no intentions of offering any tax exemptions or relief specifically tailored for the electric vehicle manufacturer.

Meanwhile, as reported exclusively by The Times of India, Tesla is actively engaged in discussions with the Indian government to put forth a groundbreaking proposition aimed at establishing a state-of-the-art manufacturing facility capable of churning out an impressive 500,000 electric vehicles on an annual basis. According to reliable sources within the government, ongoing deliberations are taking place. Moreover, Tesla has demonstrated a keen inclination towards establishing India as a pivotal hub for exports, thereby facilitating the transportation of its automobiles to countries situated within the Indo-Pacific vicinity.

Tesla’s entry plan into the Indian market was delayed earlier when the government refused to reduce imports on their vehicles. India imposes up to 100% import duty on electric vehicles, while expressing interest in locally manufacturing Tesla vehicles. However, the company initially expressed a desire to export cars in the country to assess the demand.

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