Finance Minister Nirmala Sitharaman presented a Union Budget 2023-24 in Parliament on Wednesday. During her Budget speech, the Finance Minister announced that custom duty exemptions will be provided for the manufacturing of lithium-ion batteries to promote the green mobility which is a great move.
To uplift and motivate domestic production and manufacturing of lithium ion cells which is used in Electric Vehicles(EVs), the government today vanished the customs duties on the import of machineries and capital goods used in the manufacturing of the lithium ion batteries.
According to the experts, the customs duties on the capital goods and machinery was approx. between 5 to 20%, which will be zero up to the end of March 31, 2024.
“To further provide impetus to green mobility, customs duty exemption is being extended to the import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles,” Finance Minister Nirmala Sitharaman said during her Union Budget 2023-24 speech.
The reduction in import duties is a great move which will reduce input cost and which is expected to deepen value addition to promote the export competitiveness and help to boost domestic manufacturing.