Union Minister Nitin Gadkari, known for his pragmatic and cross-party approach, has shared his perspective on electric vehicles (EVs). Gadkari suggested that government subsidies to boost EV sales might soon be unnecessary, citing existing low GST rates and the central government’s efforts to reduce reliance on fossil fuels. He emphasized that increasing the number of electric vehicles in public transport could help cut pollution and decrease fossil fuel usage. Additionally, Gadkari announced that the central government plans to introduce electric bus services between major cities in the near future. He also predicted that India will become the largest exporter of lithium batteries within the next five years.
During the GST Council meeting, Gadkari urged the Union Finance Minister to lower the GST on flex-fuel vehicles. Currently, fossil fuel-powered vehicles are taxed at 28%, while electric vehicles are taxed at just 5%. It’s worth noting that some electric vehicle manufacturers have opposed the reduction of tax on flex-fuel vehicles.