Electric vehicles may lower attractiveness of Mahanagar Gas

Mumbai: Mumbai-based city gas distribution company Mahanagar Gas (MGL) may face some challenges thanks to the government’s push to make electric vehicles (EVs) affordable for consumers.

The Union Budget on 5 July proposed to cut the goods and services tax (GST) on EVs from the current 12% to 5% by recommending it to the GST Council. In addition, an income-tax deduction of up to ₹1.5 lakh can be availed on the interest paid on loans taken for EVs. The move is expected to save tax of around ₹2.5 lakh over a five-year loan period for taxpayers. The Budget also reduced Customs duty on parts exclusively used for EVs like e-drive assembly, on-board charger, e-compressor, and charging gun to zero.