Budget 2020: will there be incentives to buy electric vehicles?
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These concessions are lower for individual buyers though. However, buyers can claim income tax rebate up to Rs 1.5 lakh on loans taken for electric vehicles. Recently, electric bicycles have
also been classified as electric vehicles for tax benefits. But they don’t come under the FAME II scheme of the government. Electric two-wheeler bicycle makers like Hero Electric are hoping
the government will incentivise purchase of electric bicycles – the argument being while electric cars and buses do reduce pollution, they don’t address traffic congestion on the roads. Car
dealers however expect the government to go easy on its electric vehicle policy, not forcing the hand of automakers, given the slowdown in sales. While there is a focus on incentivising
electric vehicles, corporate India hopes for some more sops on the manufacturing side.