GST Reforms: Centre's Push for 5% EV Tax Amid Overhaul
The Centre is advocating for a 5% tax on electric vehicles as part of a sweeping GST reform aimed at reducing tax rates on everyday items. The plan includes reducing current tax slabs, with a GST Council meeting to discuss the proposal, and opposition states seeking compensation for potential revenue losses.
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The Centre is championing the implementation of a 5% tax on electric vehicles as part of a comprehensive Goods and Services Tax (GST) reform, which seeks to lower tax rates for essential items. The reform proposal will be deliberated in a two-day meeting of the powerful GST Council chaired by Union Finance Minister Nirmala Sitharaman.
Under the reform, tax slabs could be reduced from the existing four tiers to two, aiming to lessen the tax burden on daily commodities. However, opposition-ruled states have raised concerns over potential revenue shortfalls and are requesting compensation.
Prime Minister Narendra Modi had announced plans for these reforms, and the GoM has already endorsed the proposal to remove the 12% and 28% slabs, with a special 40% rate suggested for select items like luxury cars and tobacco.
(With inputs from agencies.)
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