It is reported that the Indian government has turned down Musk’s demand, in which Tesla was asked to waive the import duty or split the tax on the vehicle into different parts. The government says that rules already allow manufacturers can bring partially made vehicles into the country and assemble them on payment of local tax.
Vivek Johri, Chairman, Central Board of Indirect Taxes and Customs (CBDT) on the question of not giving tax exemption to Tesla, said, “We have considered the issue of changing the import duty, but the country is already producing domestic production and existing imports.” Despite the duty structure, investments continue to flow into the country. That is, it is clear that import duties are not a hindrance.”
Significantly, the government of Prime Minister Narendra Modi has invited Tesla to come to India and produce it. Elon Musk, on the other hand, wants India to allow his company’s electric cars to be imported from outside so that Tesla can sell its first few foreign-made vehicles in the market at competitive prices.
However, the government imposes heavy import duty on vehicles imported from outside. Apart from this, if a company wants to bring in different parts of the vehicle and assemble them in the country, even then 15-30 percent import duty is levied on it. In fact, the government