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SIAM seeks R&D incentive in Budget,support for EV parts import

Press Trust of India  |  New Delhi 

Ahead of the Budget, automobile industry body SIAM has asked the to restore incentives given on research and development in the form of weighted deduction to previous level.

In its pre-budget wish list, the Society of Indian Automobile Manufacturers has also sought inclusion of certain imported electric vehicle parts in preferential tariff list to help promote the

"When the reduced the weighted deduction, it was stated that the corporate rate would be reduced from 30 per cent to 25 per but that hasn't happened," SIAM said.

From 2017-18 the weighted tax deduction on research and development (R&D) expenses has been reduced to 150 per cent from 200 per cent earlier.

"What we have requested the is that if the tax rate is not reduced then the incentive on R&D through weighted deduction should be increased," he added.

Sen said such a step is required as many automobile companies in are spending a lot on R&D expenses.

On electric vehicles, he said the industry has said that imported systems and components that are not made in must be put under the preferential import tariff list.

"Already there is a list and we have added more components to it," Sen said.

SIAM's demand comes in the backdrop of government promoting electric vehicles in targeting with a vision of 100 per cent electric for public transport and 40 per cent electric for personal mobility by 2030.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, January 14 2018. 12:05 IST