Government shoots down Tesla’s call for tax breaks

Must read

This is the second-biggest home price correction of the post-WWII era—it’s also a fairly mild correction

On one hand that 2.5% drop in U.S. home prices marks the second-biggest home price correction of the post–World War...

ChatGPT just created a new tool to catch students trying to cheat using ChatGPT

The maker of ChatGPT is trying to curb its reputation as a freewheeling cheating machine with a new tool that can help teachers detect...

The professor who wrote the book on digital surveillance says that Elon Musk’s Twitter takeover means our political stability, health and sanity come down...

Elon Musk has been in the news for years, but nothing compares to the splash he made in 2022 when he bought Twitter. A...

UPDATE: Acquittal of Pro-Life Activist Sparks Questions Regarding FACE Act Relevance

Last year the nation was rocked when the leaked Supreme Court decision to reverse Roe v. Wade hit...

India has turned down Tesla’s request to lower import taxes on electric cars, encouraging Elon Musk’s company to produce locally instead

New Delhi has refused to provide the US-based electric car maker Tesla with tax breaks, the chairman of India’s Central Board of Indirect Taxes and Customs, Vivek Johri, confirmed in an interview on Thursday.

“We looked at whether the duties need to be rejigged, but some domestic production is happening and some investments have come in with the current tariff structure,” Johri stated.

India levies extremely high import duties on complete vehicles, ranging from 60 to 100% depending on a car’s characteristics and price. The threshold for imposing the maximum possible tax is set at $40,000, which effectively makes all the electric cars produced by Tesla fall under that category. The existing tariffs structure has not deterred other companies from importing, so no exceptions will be made, Johri pointed out.

“Some investment has already come in with the current tariff structure. So why can’t others also come in?” the official stated. “There are other foreign brands also that are being sold in the country with the current tariff structure.”

While Tesla announced its intent to enter India’s market as early as 2019, the electric car giant has still not been able to do so. The Indian government has been encouraging the company to establish local production, pointing out that importing partially-built cars and assembling them locally would mean significantly lower levies. The car maker urged New Delhi to reduce the tariff rates on high-end cars to 40% instead, branding the standing rules “prohibitive” for the import of pricey vehicles.

Asked on Twitter in mid-January when Tesla cars would be available in India, the company’s CEO Elon Musk said he has been “still working through a lot of challenges with the government” to make the possible launch happen.

More articles

Latest article

This is the second-biggest home price correction of the post-WWII era—it’s also a fairly mild correction

On one hand that 2.5% drop in U.S. home prices marks the second-biggest home price correction of the post–World War...

ChatGPT just created a new tool to catch students trying to cheat using ChatGPT

The maker of ChatGPT is trying to curb its reputation as a freewheeling cheating machine with a new tool that can help teachers detect...

The professor who wrote the book on digital surveillance says that Elon Musk’s Twitter takeover means our political stability, health and sanity come down...

Elon Musk has been in the news for years, but nothing compares to the splash he made in 2022 when he bought Twitter. A...

UPDATE: Acquittal of Pro-Life Activist Sparks Questions Regarding FACE Act Relevance

Last year the nation was rocked when the leaked Supreme Court decision to reverse Roe v. Wade hit...

Maxine Waters Goes After Manchin and Sinema – Suggests They Don’t Care About Police Reform

Representative Maxine Waters took a shot at two Democrat Senators — Kyrsten Sinema and Joe Manchin — suggesting...