Union Budget 2023 was presented on February 1 ,2023 by union finance minister Nirmala Sitaraman . This budget turned out to be a good news for the tax payers as the income tax rebate limit has been increased and new revised income tax slabs have been announced . However if you are a fan of imported luxury cars or EVs there might be a bad news for you .
It seems like import of luxury cars and electric vehicles will be now costlier than before . While presenting the budget , finance minister announced the 10% increase in customs duty . Government has raised the custom duty from 60% to 70% in the budget which means that fully imported cars , including electric vehicles and those assembled in India with imported parts will become costlier than before .
According to Finance Minister , to push local manufacturing in the EV and luxury car segment the government has increased customs duty on imported vehicles or imported parts of vehicles.
As per the budget document , custom duty on vehicles in completely built units (CBUs) costing less than USD 40,000 or with engine capacity less than 3000 cc for petrol run vehicles and less than 2.500cc for diesel-run vehicles has been raised from 60 percent to 70 percent . Similarly , on electrically operated vehicles in CBU form , other than cost , insurance and freight value of more than USD 40,000 , custom duty has been raised from 60 percent to 70 percent .
Also , custom duty for electric vehicles in Semi-knocked Down (SKD) form increased from 30 to 35 percent.
This means that if you plan to buy a imported luxury car like Range Rover , Lamborghini , Audi , BMW, Porsche , Maserati or an Electric Vehicle , then you might have to spend a slightly higher amount .
