India proposes steep tax hikes on luxury EVs

An Indian tax panel has recommended substantial increases in goods and services tax rates on luxury electric vehicles (EVs) priced above US$46,000, potentially impacting international manufacturers including Tesla, Mercedes-Benz, BMW, and BYD. The proposal would raise goods and service tax (GST) from the current 5% to 18% for EVs priced between US$23,000-US$46,000, while vehicles exceeding US$46,000 could face rates as high as 28% or even placement in a new 40% luxury category.