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Tesla’s entry into India was hampered when the government refused tax breaks

Tesla’s plans to enter India have been scuppered. Tesla’s request for an import tax exemption was denied by the government. Tesla CEO Elon Musk once asked a Twitter user when the company’s vehicles would be available in India. As a result, Elon Musk responded by saying that Tesla will only join India if a decision is made on import taxes.

However, Union Road Transport and Highways Minister Nitin Gadkari have previously made it clear that Tesla must first establish a Tesla manufacturing factory in India if it wants tax exemptions. he stated.

The government responded to Tesla’s demand with this response 

In response to their request, the government of India said that there is already a policy for this. Importing and assembling pre-assembled vehicles in India at a cheap import duty is authorized under this policy.

Vivek Johri, the head of the Central Board of Indirect Taxes and Customs, said, “We have reviewed if there is a need for any change in duty. As a result of the current tariff arrangement, some domestic production and investment have occurred. So duty is clearly not a stumbling block.

Tax exemptions abound in this country

An automaker’s car is subject to a 100 percent import duty if it is imported and sold. On the other hand, just 15-30% of the import duty is required of a corporation that imports parts and assembles them in the country.

Model 3 will be Tesla’s next vehicle, according to the company

Tesla has set its shop in Mumbai’s Panvel neighborhood. Model 3 electric cars were expected to be launched in India by the company. At the same time, the company was aiming to debut a second electric vehicle in India following this one.

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