New Delhi: According to Revenue Secretary Sanjay Malhotra, the Indian finance ministry has clarified that it is not considering any duty waivers for Tesla. This declaration was made in reaction to Tesla CEO Elon Musk’s recent assertion that Prime Minister Narendra Modi of India had urged the business to make a sizable investment in the nation.
“Any duty waiver for Tesla is not under active consideration of the Department of Revenue, as of now,” Malhotra said in a statement.
Tesla and the Indian government had already discussed the prospect of requesting remission of customs duties to import the company’s electric vehicles, a request India previously denied. Meanwhile, The Department of Revenue has said that it is not actively contemplating any duty waivers for Tesla.
According to reports, Tesla is reportedly in discussions with the Indian government about a proposed investment for constructing a factory with an annual capacity to produce about 500000 electric automobiles. According to government insiders, the conversations are already in progress. Tesla is also looking into the possibility of using India as an export base to send vehicles to nations in the Indo-Pacific area.
The governments’s earlier refusal to decrease import taxes on Tesla’s automobiles caused the company’s entry plans into the Indian market to be postponed. Electric vehicle imports are subject to up to a 100% import duty in India. Tesla has stated its desire to initially export automobiles to the country to gauge demand, even though India has expressed interest in Tesla producing cars locally.
