Budget 2023/24: EVs Below 100 kW To Become Costlier; EVs Above 100 kW To See Price Cuts

Electric vehicles below 100 kW will now become costlier. The government has now slapped excise duty and increased the customs duty on electric cars between 50 to 100 kW through the budget of the upcoming fiscal year 2023/24. On the other hand, the government has revised the taxation structure on EVs above 100 kW to make them more affordable.A breakdown of the new tax structure for the upcoming fiscal year50 to 100 kW: The government has added a 10 percent excise duty and 15 percent customs duty on EVs with peak motor power between 50 to 100 kW. Earlier, this segment attracted zero excise and 10 percent customs only.100 to 200 kW:For EVs with peak motor power between 100 to 200 kW, the government has decreased the excise duty and customs duty to 20 percent each. Earlier, EVs between 100 kW to 200 kW attracted a 30 percent excise and 30 percent customs.200 to 300 kW:EVs between 200 to 300 kW now attract 45 percent excise and 40 percent customs. Previously, EVs making 200 to 300 kW attracted 45 percent excise and 45 percent customs.Above 300 kW:The excise and customs on electric cars above 300 kW capacity are the same as before i.e. EVs above 300 kW get 60 percent excise and 60 percent customs.