As expected, India has slashed taxes on electric vehicles (EVs) and chargers, as the pollution-choked nation seeks to boost the use of eco-friendly cars. Reuters reports that the India has reduced the goods and services tax (GST) on EVs and chargers to 5%, from the previous 12% and 18% respectively.

Earlier this month, the country proposed tax waivers on the purchase of EVs to kickstart sales, while also removing import taxes on some auto components for the same purpose. The tax breaks come in the form of an income tax deduction of 150,000 rupees (RM9,036) on interest paid on loans taken. The ultimate aim is to reduce the country’s dependence on fossil fuels.

India’s finance minister Nirmala Sithraman said during the budget announcement that the government’s plans was to make India a hub for EV manufacturing, with large manufacturing plants for lithium batteries and solar electric charging infrastructure.

India is the world’s third largest emitter of greenhouse gases and is home to 14 of the world’s most polluted cities. Apparently, the country’s toxic air claimed more than one million lives in 2017, so reducing pollution is a pressing matter. It aims for EVs to account for 30% of all passenger vehicle sales in the country by 2030.

In Malaysia, the recently-launched Nissan Leaf received complete import tax exemption, and is only faced with 10% excise tax and SST. That allowed Nissan distributor Edaran Tan Chong Motor to price the second-gen electric hatchback at a palatable RM188,888 OTR without insurance.