Budget 2019: Ola CEO Bhavish Aggarwal says government’s focus on EVs is 'inspiring'

Among all other sectors, Budget 2019 brought huge cheer for the automobile sector in particular as Finance Minister Nirmala Sitharaman in her maiden Budget 2019 speech on Friday announced additional income tax exemption of Rs 1.5 lakh for people buying electric cars on loan. With the latest announcement, taxpayers get a total benefit of around Rs 2.5 lakh over the period of purchase. The finance minister said the Goods and Services Tax (GST) on electric vehicles would soon be reduced from 12 per cent to 5 per cent. Both these decisions are likely to give a boost to green mobility in India.

Reacting to these announcements, Bhavish Aggarwal, Co-founder & CEO, Ola, said that government's focus on Electric Mobility and EVs is inspiring. "The Government’s focus on Electric Mobility and EVs in the Budget 2019 is inspiring. Lower GST rate, interest subvention for EV loans and the commitment of Rs. 10,000 cr towards FAME 2 are encouraging. This further reinforces Ola’s mission to build Electric Mobility for India and the world and contribute toward making our nation, the global hub for innovation in this space," he said. 
 
Agarwal said that various startup friendly initiatives announced as part of the budget are important for this fast growing ecosystem and will encourage India’s youth to create value, wealth and livelihood opportunities for millions. "The thrust on digital payments will further accelerate the nation towards a transparent and cashless economy," he added. 

The government has already asked the GST Council to lower the tax rate on electric vehicles from 12 per cent to 5 per cent, Sitharaman said in her Budget speech, adding that customs duty was also being exempted on certain parts of electric vehicles. The government had also launched the second part of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) Scheme in April this year.

As part of this scheme, the Centre would spend over Rs 10,000 crore to boost the EV adoption in India in the next three years.