Society of Manufacturers of EV Petitioned at NGT for Green Tax on Fuel-Based Two-Wheelers

Society of Manufacturers of EV Petitioned at NGT for Green Tax on Fuel-Based Two-Wheelers

The Society of Manufacturers of Electric Vehicles (SMEV) has filed petition before the National Green Tribunal (NGT) expressing concerns against the government’s move to cut FAME II subsidy and support a ‘Green Tax’ on fuel-based two-wheelers.

In its petition SMEV claimed that the Ministry of Heavy Industries’ latest decision to cut down FAME II subsidies is likely to disrupt India's growth in the EV sector and consequently have a detrimental impact on the environmental and health indices of the country.

The abrupt move by the Ministry to cut down subsidies by 75 per cent was challenged by them.

Additionally, SMEV stated that it has asked for NGT’s support for a green tax on fuel-based two-wheelers in order to encourage the adoption of green vehicles and contribute to the national objective of environmental preservation and pollution reduction.

SMEV Secretary General Ajay Sharma said, “Electric vehicles are subsidized across the world with the intent to induce a mass shift towards non-polluting energy systems.”

He further said, “The Ministry's decision is contrary to this consciousness and an anomaly that defies logic or law, especially, as the EV manufacturers were emboldened to shift technologies, work force, capital, and enterprise towards this sector based on the support expressed by the government.”

It was brought on record by SMEV that many OEMs are struggling with the financial stress caused by actions of the ministry as subsidies amounting to over Rs 1,200 crore have been held up and further demands of retrospective payback of subsidies given in 2019 has been made.

“In fact, it is a matter of time until they shut shop due to lack of working capital, a loss of investor and bank support, a delay in production timelines, and a rapidly vanishing distribution network,” the statement added.