Fuel Taxes May Go Higher to Encourage the Sale of EV in India

As per a proposal by the Finance Ministry, it has been suggested to impose higher taxes on petrol and diesel cars to encourage the sales of electric vehicles.

The ministry believes that it will help in avoiding the extra financial burden on government it encourages buyers under Faster Adoption and Manufacturing of Electric vehicles (FAME-INDIA) scheme.

The recommendation of this proposal has come by the ministry after the department of heavy industries raised a demand for a budgetary requirement of Rs 9,381 crore to run the FAME-INDIA scheme till 2022-23.

The phase one of the scheme was earlier proposed for two years till March 31, 2017 but in April, the government extended twice for six months up to March 31, 2018.