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Ahead of the Budget, automobile industry body SIAM has asked the government to restore incentives given on research and development in the form of weighted tax deduction to previous level.
In its pre-Budget wishlist, the Society of Indian Automobile Manufacturers (SIAM) has also sought inclusion of certain imported electric vehicle parts in preferential tariff list to help promote the eco-friendly technology.
From 2017-18 the weighted tax deduction on research and development (R&D) expenses has been reduced to 150 percent from 200 percent earlier.
Sen said such a step is required as many automobile companies in India are spending a lot on R&D expenses.
On electric vehicles, he said the industry has said that imported systems and components that are not made in India must be put under the preferential import tariff list.
"Already there is a list and we have added more components to it," Sen said.
SIAM's demand comes in the backdrop of government promoting electric vehicles in India targeting with a vision of 100 percent electric for public transport and 40 percent electric for personal mobility by 2030.
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