Punjab government has decreased the VAT on electric bikes and scooters from today. The government wants to promote the use of electric two-wheelers in the state as it is environment friendly.
The VAT has been decreased from 13 per cent plus 10 per cent surcharge (14.30 per cent) to 5.5 per cent plus 10 per cent surcharge (6.05 per cent) on electric bikes and scooters. With this development, the on road cost of EVs will come down by a decent number, that’ll help the companies grow their overall sales. Companies like Hero Electric and Yo Bikes are going to benefit from this action by the government.
Interestingly, VAT on these products in states like Delhi and Rajasthan is zero per cent. So it looks like other state governments might follow soon. However, there have been no cut in VAT for electric vehicles, which is also friendly to the environment. But it looks like, Punjab government is also considering the space taken on the road, which is considerably higher in the electric cars as compared to the electric two-wheelers.
