The Kerala unit of Congress on Monday accused Finance Minister Nirmala Sitharaman of favouring the ultra-wealthy at the expense of public funds by highlighting the preferential tax treatment afforded to luxury electric vehicles (EVs) in India. According to a post on the official Congress handle, the BMW i7 M70, India’s most expensive luxury EV priced at Rs 2.38 crore, benefits from a significantly lower Goods and Services Tax (GST) rate of just 5%, resulting in a tax of Rs 11.
9 lakh. This is in stark contrast to the higher taxes imposed on conventional petrol vehicles, which face GST plus cess rates ranging from 29% to 50%. The post compared the i7 M70 with the top-end Innova Hycross ZX(O).
According to the post, the Hycross ZX(O), with a base price of Rs 20.65 lakh, sees its on-road price nearly double to Rs 39.55 lakh due to these higher taxes.
Congress argues that this discrepancy raises concerns that while luxury EVs are taxed lightly, ordinary petrol cars are subjected to substantial financial burdens. The post contends that even the wealthiest nations do not offer such generous tax breaks on ultra-luxury EVs. It added that the tax relief provided for each i7 M70 could have been used to fund public transport initiatives, such as adding six buses to the roads.
Furthermore, the post noted that customisations and upgrades for these luxury EVs, including features like mag wheels, are also taxed at the same low rate of 5%. This is perceived as an additional benefit for the affluent, drawing criticism from those who believe taxpayer money should be used more equitably. The post not only criticised Sitharaman but also questioned Road Transport and Highways Minister Nitin Gadkari’s EV policy.
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