Govt Offers Tax Breaks, Lower Import Duties for New Energy Vehicles

The federal government has initiated consultations for the New Energy Vehicle (NEV) Policy 2025-30 in a bid to reduce carbon emissions. The policy will prioritize local NEV manufacturing, decrease fossil fuel dependency, and lower greenhouse gas emissions. Key incentives include tax breaks, lower import duties on NEV parts, and green financing options to encourage investment in eco-friendly technologies. The Engineering Development Board (EDB) developed the draft policy, which proposes a zero-emission fleet by 2060 and mandates charging infrastructure nationwide. Oil Marketing Companies will be required to install Level 3 chargers at 10 percent of their stations. Private firms will receive tax exemptions and subsidized electricity for setting up charging points. The policy outlines customs duty reductions to 1 percent on NEV parts and 10 percent on fully built units until 2027, along with sales tax exemptions for local NEV components. The policy also mandates battery recycling standards and offers incentives for setting up recycling centers. Custom duty reductions for heavy commercial vehicles are also included until domestic production scales up.