Automobile Union Budget 2023: See what you will get the benefits

Customs duty on capital goods/machinery for the manufacture of lithium-ion cells for use in batteries of electrically operated vehicles is eliminated in the Union Budget 2023. (EVs). The move is expected to help lower the cost of EVs in the country.

Nirmala Sitharaman, Union Finance Minister, presented the Union Budget 2023 in parliament today. As is customary, the budget includes provisions for every sector of the economy. Here’s a look at the key announcements for the automobile industry in Modi’s second full budget.

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Lithium-ion batteries are exempt from customs duties.

Customs duty on capital goods/machinery for the manufacture of lithium-ion cells for use in batteries of electrically operated vehicles is eliminated in the Union Budget 2023. (EVs). The move is expected to help lower the cost of EVs in the country.

“Customs duty exemption is being extended to imports of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles,” Finance Minister Nirmala Sitharaman said in her speech.

Basic custom duty changes.

The finance minister proposed in the Union Budget 2023 to reduce the number of basic customs duty rates on goods other than textiles and agriculture from 21% to 13%. As a result, some basic customs duties, cesses, and surcharges, including those on automobiles, have undergone minor changes.

Mission for Clean Environment through Green Hydrogen

The finance minister emphasised the government’s commitment to green mobility by highlighting the recently launched National Green Hydrogen Mission. She stated that the National Green Hydrogen Mission, which will cost Rs. 19,700 crores, will “facilitate the economy’s transition to low carbon intensity, reduce reliance on fossil fuel imports, and position the country to assume technology and market leadership in this emerging sector.” “.

“Our goal is to reach 5 MMT of annual production by 2030.” “She went on to say.

Old vehicle scarping

In addition to the vehicle scrapping policy mentioned in Budget 2021-22, the minister stated that she will allocate funds for the Central Government to scrap old vehicles. States will also be aided in the replacement of old vehicles and ambulances, she added.

Personal income tax rebate

The Union Budget 2023 raises the personal income tax rebate limit from 5 lakh to 7 lakh. This is likely to provide more disposable income for salaried citizens to spend on items such as automobiles.

“Currently, those with incomes up to 5 lakh do not pay any income tax under either the old or new tax regimes. In the new tax regime, I propose raising the rebate limit to Rs 7 lakh. Thus, under the new tax regime, people earning up to Rs 7 lakh will not have to pay any tax,” the minister explained.

#unionbudget2023 #autobudget2023

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