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India Considers Higher GST on Luxury Electric Vehicles

9/2/2025

30 4 Full Breakdown

Summary

Story summary

A tax panel in India proposed raising GST on luxury electric vehicles (EVs) over $46,000 to 28%.
For EVs priced between $23,000 and $46,000, the rate may increase from 5% to 18%.
The GST Council will meet on September 3-4 to finalize these recommendations.
Automakers caution that higher taxes could slow EV adoption in a growing but small market, currently 5% of total car sales.

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Story summary

A tax panel in India proposed raising GST on luxury electric vehicles (EVs) over $46,000 to 28%.
For EVs priced between $23,000 and $46,000, the rate may increase from 5% to 18%.
The GST Council will meet on September 3-4 to finalize these recommendations.
Automakers caution that higher taxes could slow EV adoption in a growing but small market, currently 5% of total car sales.