Describing the Union Budget as development friendly and future oriented, Prime Minister Narendra Modi on Friday said it is a "green budget" which focuses on the environment and pitches for green and clean energy and transportation needs. "The Budget will simplify the tax process and help in modernising infrastructure in the country," Modi said.
"Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer," says Nirmala Sitharaman. (Image: News18 Creative)
Finance Minister Nirmala Sitharaman earlier announced the reduction of GST on electric vehicles from 12% to 5% presenting the Union Budget in Parliament today. She said that the government has already moved GST council to lower the GST rate on electric vehicles (EV) from 12% to 5%. Also to make EVs affordable for consumers, government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs.
Nirmala Sitharaman also said the government has already approved Rs 10,000 crore for FAME II scheme on April 1, 2019 to encourage faster adoption of electric vehicles by providing right incentives and charging infrastructure. FM also announced that there will be a comprehensive restructuring of National Highways Programme to ensure creation of National Highways Grid of desirable capacity.
With Inputs from PTI